Bitcoin (BTC) miners are keeping more cryptocurrencies than they sell on the markets. According to metrics from blockchain research firm Glassnode, after two months of spending, miners are saving their rewards again.
Data shows that, between December 28, 2020 and on February 25, 2021, the miners exhibited a negative balance. That is, sales were higher than the amount of cryptocurrencies they kept in their possession.
Daily sales were more high during January with caps that reached almost 24,000 BTC . However, in February the trend began to decrease with a sales cap of 6,100 BTC registered on Friday the 5th.
After two months of sales, on February 26 Glassnode registered a positive balance in the addresses of miners, which reached 1,368 bitcoins. A day later the balance was also favorable with 658 BTC saved.
The data suggests that if the miners’ saving trend continues or increases, the price of bitcoin could rise further. The reason is that it would decrease the supply of BTC in the cryptocurrency markets, which would accentuate the shortage of bitcoin.
The lower availability of bitcoins in the markets would be marked by the high demand that exists between institutional investors . Firms such as Tesla, MicroStrategy, Square or the investment fund Grayscale, are acquiring more and more bitcoin in large quantities.
In addition, it should be mentioned that during 2020 the third halving of BTC was registered , which reduced the issuance of new cryptocurrencies by 50%. Until mid-May of last year the network issued incentives of 12.5 BTC for each mined block; now the figure is only 6.25 BTC.
Miners’ sales occurred at the height of the bitcoin price boom. In that period, it went from about $ 27,000 to an all-time high of $ 58,640, according to CoinGecko data. The highest price in the history of BTC was recorded on Sunday, February 21.
Feedback on saving bitcoin miners
In social networks users gave their opinion on the behavior of miners. For analyst Lex Moskovski, saving would be a sign of an upcoming uptrend in the cryptocurrency market. “The miners stopped selling and started accumulating bitcoin (…) this is bullish,” Moskovski said on his Twitter account.
A similar point of view was that of the user @OMatthew who explained that it would be a usual movement in the cryptocurrency markets . On the supply and demand of bitcoin he highlighted the following:
«Miners don’t have an infinite supply. They accumulate for a time and then dispose of them at the moments they consider most opportune. Therefore, this is likely to be as simple as the sellers who have reduced their bid during this correction phase, so the selling pressure is decreasing. Upward movement soon ».
2020 and what going from 2021 could be considered as years of high volatility in bitcoin. Last year the cryptocurrency created by Satoshi Nakamoto went from less than $ 5,000 per unit to almost $ 30,000. At the time of publishing this article, its price is $ 47,700 according to the CriptoNoticias price index.
On price fluctuations and paper that miners play in it, this newspaper reported in February that, according to a CoinMetrics study, there is little evidence that miners are responsible for the price drops of bitcoin.