A report published by Glassnode has revealed that bitcoin miners are hodling as old investors rake in the profits
On-chain data analysed by Glassnode has shown that the majority of miners are only selling a small fraction of the Bitcoin they are earning. Long-term investors, on the other hand, are benefiting from the profits they are making. The crypto analytics firm disclosed that miner outflows have become thin on the ground since the month began. This is in contrast to what happened in January where miners sold BTC in massive numbers.
According to the published data, longer-term investors and miners make up the Bitcoin seller community during the bull cycle. The on-chain analytics provider went on to surmise that the reduced miner outflows represent a bullish market. Glassnode set forth the logic that miners have settled their operation costs or they are stockpiling coins following Tesla’s announcement of getting in on Bitcoin.
A section of the report read, “This suggests that miners have either completed adequate sales to cover costs, or could also mean they see Tesla’s vote of confidence as fair reason to keep a strong grip on their treasuries.”
The data also showed that many long-term investors saw Tesla’s announcement as a good opportunity and leveraged it to clean up. The analytics firm based this inference on Bitcoin’s Average Spent Output Lifespan – a metric that shows the average age of spent transaction outputs.
The theory from Glassnode is also backed by the Coin Days Destroyed metric that depicts the economic activity based on coins that haven’t been used in a while. According to the metric, many older coins are currently in distribution. The blockchain firm finally gathered that long-term investors have been beneficiaries of the Bitcoin run that started in October last year.
Bitcoin is currently up almost 30% since the EV automaker announced its $1.5 billion BTC purchase. This comes after a dipping spell that began when Bitcoin corrected heavily in January. The leading crypto hit a record high today when it briefly broke the $50,000 level on some major exchanges including Bybit and Coinbase, for the first time since its creation. The crypto has since retreated and is changing hands at $49150 — almost halfway the six-digit price.