Bitcoin miners are ducking out while long-term investors take profits
Data on the chain shows that while miners are selling less BTC, former investors are making profits.
On-chain analytics provider, Glassnode, has published data revealing that Bitcoin miners are hoarding while long-term investors are taking profits.
Despite January seeing heavy sales from miners, Glassnode’s report shows that miner outflows have dried up Bitcoin Millionaire during February so far.
The report states that miners and long-term investors are the two main sellers of Bitcoin during bull markets. According to Glassnode, the decline in miner outflows can be inferred to be bullish, with miners having already covered their operating costs or stockpiling coins in response to Tesla’s $1.5 billion investment in Bitcoin:
„This suggests that miners have either completed adequate sales to cover costs, or may also see Tesla’s vote of confidence as a fair reason to keep a strong grip on their treasuries.“
With miners now clinging to their BTC, Glassnode concludes that most coins sold on the markets are being dumped by long-term investors
The report notes last week’s ‚Elon Candle‘ – with the largest daily candle in BTC history being set the day after Tesla’s investment announcement, driving a price gain of $7,162 or 18.5% on Monday, February 8.
Looking at Bitcoin’s Average Spent Lifetime (ASOL), an indicator that measures the average age in days of all spent transaction results, Glassnode concluded that long-term investors capitalised on the Tesla news to realise profits.
„Elon candle has raised the average age of coins spent from 30 days to 58 days, as shown by ASOL.“
The firm noted that Coin Days Destroyed (CDD), which is a measure of economic activity that gives more weight to coins that have not been spent for a long time, also shows that older coins are being redeployed. Glassnode concludes that long-term investors have been taking profits since October – when BTC broke above $12,000.
Tesla’s investment has also driven record social signals for Bitcoin, with Twitter activity soaring to new heights after the carmaker’s investment was disclosed.
Despite the profit-taking, Bitcoin’s price continues to gain, with BTC testing its recent all-time high of around $49,600 on February 16.