Miners are HODLing more Bitcoin than at any other point within the past 2 years
Traditionally the largest net sellers of bitcoin, miners are currently holding more bitcoin than normal.
In fact, miners are HODLing more bitcoin in their wallets than at any other time within the last 2 years.
And looking back at the data, this is an interesting development, possibly indicating we are nowhere near a top in the bitcoin market.
Check it out:
(Source: https://www.coindesk.com/miners-bitcoin-holdings-reach-two-year-high-to-almost-2m)
This is interesting because miners traditionally are said to sell when markets are strong and hold when markets are weak.
However, looking at the current bitcoin market, it can hardly be described as "weak".
So, what is going on exactly?
Well, if you look at the chart above we can see that the lowest holdings by miners was back around June/July of 2019.
Do you remember what happened back then?
I'll help you out in case you can't recall...
Bitcoin had spent the last 6 moths or so rallying off of the December lows ultimately getting around $14k at the peak.
Miners were basically selling off their stock the entire time.
Based off of that data we can surmise that when balances are going down being held by miners they tend to think that the price is near a top and it's a good time to be a seller.
Which is the exact opposite thing we are seeing right now.
That probably means that the price needs to go higher before they are going to start unloading their positions.
And miners likely have a pretty good bead on where bitcoin prices are headed in the medium term.
I'm not sure about you, but to me this looks like another feather in the cap of "bitcoin's not done going up yet" cap.
Stay informed my friends.
-Doc
Posted Using LeoFinance
interesting point of view
interesting point of view
Thanks.
Test
It is pretty crazy how much miners gamble on the market, but then again it makes sense.
One Bitcoin will always be worth one Bitcoin, so the price is always stable :D
Very true, except I imagine their costs are in pesky fiat...
Yep! But at the same time I think that many miners must feel a responsibility on a political level to support Bitcoin as actual currency rather than the speculative cash-cow it's turned into. If fiats start hyperinflating that transition is going to become much easier. If Bitcoin eventually has a higher market cap than world superpowers I imagine it's stability could rival even the most solid central banks (if there is such a thing).
Congratulations @jrcornel! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
Do not miss the last post from @hivebuzz: