Bullish for BTC: Bitcoin miners are accumulating now – instead of selling
Recent mining data suggests miners have switched from selling rewards to accumulating – amid a supply crunch on exchanges.
Miners stop delivering
According to data from cryptocurrency analytics firm Glassnode, Bitcoin (BTC) miners stopped Bitcoin Bank selling their mining rewards altogether last week – and in favour of accumulation.
As the „Miner Net Position Change“ data shows, the difference between miner rewards and miner sales turned positive for the first time since 27 December.
This means that the amount of BTC sold is less than the additions to miner-owned wallets. The rise in the MNP indicator came at the moment when BTC dipped to the $44,000 mark.
Indeed, the period up to 28 December saw MNP in positive territory for more than three weeks, corresponding with the top cryptocurrency’s rise above the significant $20,000 level.
Institutions gobble up bitcoin
Indeed, the data shows what the cryptocurrency market perhaps already knows too well: demand is currently at an all-time high.
Institutions like Grayscale and MicroStrategy continue to hoard BTC and other cryptocurrencies with a ferocious appetite. Just a few hours ago, the cryptocurrency fund management company bought another 53,000 Ethereum (ETH) in a single day.
In fact, their total cryptocurrency assets under management (AUM) now exceed $36.6 billion. They also recently revealed plans to expand their fund offerings, including several other cryptocurrencies.
MicroStrategy is not far behind. The business analytics firm has been in the headlines for its frequent bitcoin impulse buys, with the latest purchase involving $10 million.
In addition, the company has raised another $1 billion through debt issuance and used these funds to buy another 20,000 bitcoin (Go to buy bitcoin cheap platform comparison).
All signals are bullish
Accordingly, these large purchases are causing a significant supply shortage. Combined, both Grayscale and MicroStrategy are heading towards owning over 10% of the total bitcoin supply.
You don’t have to have a PhD in econometrics to gauge the impact of this data on the market.
When supply is less than demand, the price goes up. And at the moment, all indications, both on the demand side and on the supply side, are that this will continue to be the case.