Analyzes Bitcoin miners’ behavior to assess selling pressure

• Bitcoin miners slow down on BTC sales while miners’ earnings continue to rise.
• Retail investors remain optimistic.

Bitcoin miners have long been exposed to the volatility of the cryptocurrency market. This has resulted in cases where miners have liquidated their holdings.

But in most cases, these miners have preferred to maintain their positions.

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Step on the brakes

However, public mining companies were observed to be consistent in their behavior. According to Blockridge’s data, all mining companies sold 100% of their holdings in the latter half of 2022.

However, for the first time in over six months, the liquidation rate fell below 100% in March, and then fell further to 95% in April. Indicated that these companies had slowed down on selling their BTC holdings.

Source: Blocksbridge

Well, the decline in sales can be attributed to the fact that companies’ faith in BTC has been restored as the coin’s price has risen over the past three months.

Due to the increase in BTC’s price, the income generated by miners also witnessed an increase.

Source: Blockchain.com

Speaking of mining pools, Foundry Pool, one of the largest mining pools in the sector, was observed to have a successful run in terms of mining blocks. According to btc.com’s data, over the past six months, the pool has managed to mine 8,060 blocks.

Source: btc.com

The miners and pools are just starting to hold on to BTC, and retail investors are showing no signs of stopping their accumulation.

Glassnode’s data indicated that the number of addresses with more than 0.1 coins has reached an all-time high.

Source: glassnode

No pressure

At the time of writing, the selling pressure on these investors was relatively low. According to data provided by Santiment, the 30-day MVRV ratio of BTC had turned negative.

This indicated that most short-term owners were not profitable and had no incentive to sell.

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On the other hand, the long/short difference of BTC continued to increase, indicating that the majority of addresses on the network were long-term owners of Bitcoin.

Source: Sentiment

Despite these factors, short positions on the network continued to increase. For example, consider the diagram below.

Source: coinglass