Could Bitcoin miner sell pressure indicate further upside potential?

1 year ago

Bitcoin miners person been selling BTC holdings astatine a complaint not seen since aboriginal 2021. Further, the persistence of the antagonistic nett presumption alteration has not occurred since 2017. Miners consistently sold Bitcoin for the past 3 months astatine an assertive complaint apt to screen liabilities specified arsenic vigor bills and loans.

Since 2020, miners’ nett Bitcoin positions person turned antagonistic connected 5 occasions. Bitcoin saw a large terms summation successful 4 of those 5 occurrences during the pursuing months. There was besides sustained selling from Bitcoin miners passim the entirety of the 2017 bull run.

While miners selling Bitcoin tin beryllium seen arsenic a grounds of an underperforming market, it has besides historically been a precursor to upside question successful Bitcoin’s price.

The lone periods successful Bitcoin’s beingness erstwhile miner accumulation occurred alongside bullish sentiment were aft the COVID clang of May 2020 and arsenic Bitcoin deed its all-time precocious successful Nov. 2021.

Miners, however, are transferring progressively little Bitcoin onto exchanges. Whether the mentation is related to the nonaccomplishment of respective exchanges during the carnivore marketplace oregon the accrued availability of P2P OTC trades is unknown.

The chat beneath highlights the measurement of Bitcoin sent to exchanges from miners since 2016. There person been nary spikes successful measurement during 2022, but determination has been accordant transferring of Bitcoin to exchanges. Bitcoin miners are selling coins astatine an accelerated gait which could beryllium indicative of aboriginal upside potential.