On-chain data analyzed by Glassnode has shown that the majority of bitcoin miners are only selling a small fraction of the Bitcoin they are earning. Long-term holders, 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 their BTC holdings in massive numbers.
Longer-term investors and miners make up the Bitcoin seller community during the bull cycle.
According to the published data, longer-term investors and miners usually make up the Bitcoin seller community during the bull cycle. The Glassnode report went on to surmise that the reduced miner outflows represent a bullish market. The on-chain analytics provider 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 noted, “This suggests that miners have either completed adequate sales to cover costs, or could also mean they see Tesla’s vote of confidence as a fair reason to keep a strong grip on their treasuries.”
Bitcoin continues to witness a massive winning rally.
Since Elon Musk-led Tesla’s investment in the leading cryptocurrency, bitcoin, the market has seen a frenzy. Several other institutions have made statements about their potential interest in bitcoin and other cryptocurrencies. As reported earlier, international payment giant Mastercard became the latest mainstream firm to embrace cryptocurrency this week, announcing plans to begin allowing cardholders to transact in certain cryptocurrencies. The payment firm is also “actively engaging” with central banks worldwide on their plans to launch new digital currencies, Mastercard said in a blog post.