MarketsBitcoin Miners Finally Stopped Selling Bitcoin

Bitcoin Miners Finally Stopped Selling Bitcoin

One of the dirty secrets of the bitcoin market over the last couple of weeks is that miners have been selling yes the bitcoin miners they’re being forced to sell their bitcoin. Glass node data shows that Bitcoin Miners Finally Stopped Selling Bitcoin.

Why were they doing it?

Well as the price of bitcoin continued to fall all of their expenses were still denominated in u.s dollars and so naturally if the price of bitcoin is falling and the amount of revenue they derive from mining is going lower and lower and lower then of course if you have us dollar-denominated expenses you have to sell the bitcoin on your balance sheet to be able to fund those expenses.Β 

So that is exactly what we saw for weeks and weeks that doesn’t exactly bring a ton of confidence to the market when they see the bitcoin miners actually selling their bitcoin. Every single time that we have a bitcoin bear market there’s always the fud the mining death spiral is upon us. Now of course we have difficulty adjusting. This means that miners eventually will become profitable again but there has been a reversal in their actions. Just recently over the last couple of days we now see miners not selling but instead, they are starting to accumulate again. You can see this data here from the glass node which indicates that bitcoin miners stopped selling btc

and so naturally as we see miners beginning to accumulate that could serve as a potential signal that we’re having some sort of bottoming effect.Β 

Now, bitcoin miners stopped selling btc so miners, are susceptible to the price of bitcoin to the difficulty adjustment and the cost of their electricity but to have seen them selling so much bitcoin to see bitcoin’s price continue to go down and now to see these same exact miners actually buying bitcoin. It’s very interesting nick carter was recently on the podcast and he talked a lot about all the miners selling especially the publicly traded ones who had taken on tons of leverage and had to fund all their operations. If now miners feel strong enough that they can start to accumulate rather than sell.Β 

That either means that they have really strong balance sheets or they think that the market is starting to bottom out. Regardless of why they’re doing it, this is an important data point. Because the miners are a great signal as to what actually is happening in the market. Given that a blockchain is a public ledger that can be audited by anyone anywhere in the world. It means that we can see exactly what they’re doing at all times they were selling for weeks and weeks and weeks but now they’re re-accumulating again and this is part of the natural market cycle of bitcoin.

There are bull markets there are bear markets and regardless of if you’re new or you’ve been around for a long time. The bear markets are never fun the fud just gets replayed over and over again but somehow someway the new bear market always happens to have more value than the last one. Keep an eye out there and watch what the miners are doing they can tell us a lot about what’s happening in the market and now that they’re re-accumulating. It seems to be a pretty bullish sign.

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