Bitcoin miners are crucial to the network’s overall health. But their hodling behavior also depicts key market sentiment that can potentially demonstrate the asset’s price action in the near-term.
Bitcoin opened on a super bullish note this week. Even as the price of the flagship crypto-asset appeared to have taken a pause, there is more than what meets the eye.
According to the latest weekly report by the crypto-analytic platform Glassnode, Bitcoin miners have eased off their sell pressure this week.
This comes after a period of increased miner distribution especially during the rally and subsequent consolidation throughout the month of January. As noted by the above chart, the red bars of the Bitcoin miner net position depicted an intense distribution which cooled off significantly this week.
What does the latest behavior by Bitcoin miner signify?
The latest trend shows Bitcoin miners are keen on ‘Hodling’ their coins rather than dumping. This could suggest that miners in the network have either completed adequate sales to cover costs, or could also mean they see Elon Musk’s firm Tesla, purchasing $1.5 Billion worth of BTC as part of the companies treasury balance sheet, a “vote of confidence” in Bitcoin.
The market has so far held on to its gains despite failing to breach the coveted level of $50K. The latest trend by Bitcoin miners further instilled faith in the coin’s capability to attract more gains.
In yet another important development, Bitcoin miners set a new record for weekly revenue after bringing in $354.4 million last week. The increase in mining revenue, in turn, helped Bitcoin to stay afloat above crucial support levels throughout the week.
Long-Term HODlers Capitalizes On Tesla News
Unlike Bitcoin miners, there are the HODLers of older coins or simply long-term HODlers that are yet another category of important market participants.
And according to the latest charts, these entities who hold older coins appear to have taken advantage of the market strength to move their coins and potentially sell into the move.
As per the above chart on Glassnode’s Bitcoin’s Average Spent Output Lifespan [ASOL], these long-term investors have capitalized on Tesla’s news to realize profits.
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