March 28, 2024

Miners sell more and more bitcoins

Miners sell more and more bitcoins

Despite Tuesday's sudden price decline, miner sales show the Bitcoin market remainsstrong.

The largest cryptocurrency at market value fell by 8% from $ 10,137 to $ 9,298 in less than 5 minutes during trading hours on Tuesday in the US, which deprived of hope for continued upward movement.

However, the fall in prices did not deter miners from depleting their reserves.

Miners sell more and more bitcoins

According to data source ByteTree, minerssold 920 BTC and generated 844 BTC in the last 24 hours, reducing their holdings by 76 BTC and maintaining their rolling miner inventory ratio (MRI) above 100%.

“Miners hold when the market is weak, not becausethey are not sellers, but because the market cannot accept their offer. When they can sell, this indicates that the market is well supported, ”said ByteTree founder and chairman Charlie Morris, adding that MRI is currently high.

Morris's theory contradicts the widespread belief that miners, as sellers, would like to sell expensive and save their bitcoins when price increases are expected.

However, generally accepted wisdom may bequestioned, because miners mainly work for cash, which means that they must liquidate their holdings almost daily in order to finance the cost of mining. This is evident from the fact that miners account for the highest percentage of the total number of bitcoins received on exchanges.

And although they have the greatest impact on prices, price fluctuations affect the profitability of mining. A steady drop in prices often crowds out small and inefficient miners from the market.

Therefore, miners would like to sell less ona market that lacks the strength for their offer to be publicized. On the contrary, they would be inclined to sell more when there is a strong upward movement in the market.

Therefore, we can say that the increaseThe supply observed in the last 24 hours is a sign of miners' confidence in the broader bull market, although some observers may argue that the 24-hour changes are too small to draw sound conclusions.

However, stocks have declined over the past week amid rising prices.

Miners sell more and more bitcoins

Bitcoin is currently growing at 6% per week,despite the fact that miners reduce reserves by 504 BTC. Similarly, miners sold more than they received during the uptrend, from a March low of $ 3,867 to recent highs of about $ 10,400.

Analysts expect a deeper decline in the near future.

“A break below $ 8,800 will lead to moreaggressive sales, ”said Nicholas Pelecanos, head of sales at NEM Ventures. “$ 8,500 is the last support before the price reaches $ 7,000.”

 

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