Miners Accumulating Bitcoin, But On-Chain Data Suggests They May Dump Soon
– Bitcoin miners have been accumulating heavily since the crypto market witnessed some relief from the bearish trend.
– However, some on-chain data suggests that miners may be preparing to dump, which could hinder the progress of the rally ahead.
– The Miner’s Position Index (MPI) has spiked heavily, indicating that the miners are selling at a higher rate than usual.
The crypto market has seen some much-needed relief from the bearish trend in recent times, and the Bitcoin miners have been quick to jump on board. The price of Bitcoin skyrocketed above $21,000 and even went close to $21,500, before facing a minor pullback. However, recent data suggests that the miners may be preparing to dump, which could put a damper on the market’s progress.
The Bitcoin hash rate has been steadily rising, and the miner’s reserve has also begun to swell. This led many to believe that the miners had started to accumulate after selling for more than two months. But a recent discovery by the popular on-chain platform CryptoQuant may put a spanner in the works. According to the platform, the current pullback is being led by the miners, who are trying to create selling pressure in the market.
The Miner’s Position Index (MPI), which measures the ratio between the miner outflows and the 365-day moving average, has spiked heavily. This indicates that the miners are selling at a much higher rate than usual. This means that they might be preparing to dump their BTC holdings when the time is right.
The MPI is just one of the indicators that point to the possibility of miners dumping their BTC. Some miners appear to be accumulating heavily instead of liquidating their holdings, and this could be seen as an indication that they are preparing to dump at an opportune moment.
Moreover, the amount of Bitcoin held by exchanges is also on the rise. This could be an indication of miners moving their holdings to exchanges ready to dump them.
All of this paints a worrying picture for the crypto market. If the miners do dump their holdings, it could put a serious dent in the current bullish trend. However, it is too early to tell whether this will actually happen and traders should continue to monitor the market closely for any signs of significant selling pressure.