Analysis provider to the chain, Glassnode, has released data revealing that Bitcoin miners are accumulating while long-term investors are making profits.
Despite the fact that the miners sold a lot in January, the Glassnode report shows that the outflow of miners has dried up so far in February.
The report claims that miners and long-term investors are the two most important sellers of Bitcoin during bull markets. According to Glassnode, declining outflows from miners can be inferred as bullish, and miners have covered all their operating costs or amassed coins in response to Tesla’s $ 1.5 billion Bitcoin investment:
“This indicates that miners have completed sufficient sales to cover costs, or it could also mean that they see Tesla’s vote of confidence as a fair reason to keep their treasuries strong.”
With miners now hanging on to their BTC, Glassnode concludes that most coins sold in the markets are offloaded by investors in the longer term.
The report highlights last week ‘Elon Candle’, with the largest single daily candle in BTC’s history the day after Tesla’s investment was announced, which saw a 24-hour price increase of $ 7,162 or 18 on Monday, February 8th. Yields 5%. .
Given Bitcoin’s average life expectancy (ASOL), an indicator that measures the average age in days of all transaction expenses, Glassnode concluded that long-term investors used Tesla’s news to realize profits.
“The Elon candle increased the average age of coins spent from 30 days to 58 days, as indicated in the ASOL.”
The firm noted that Coin Days Destroyed (CDD), a measure of economic activity that gives more weight to coins that have not been spent for a long time, also shows that older coins are being redistributed. Glassnode concludes that long-term investors have been making profits since October – when BTC broke above $ 12,000.
Tesla’s investment has also driven record social signals for Bitcoin, with Twitter activity rising to new highs after the vehicle maker’s investment was announced.
Despite the profit-taking, the price of Bitcoin continues to rise, and BTC tested its recent high of around $ 49,600 on February 16th.