Miners Have Stopped Selling and Started Accumulating Bitcoin
The volatility of the world’s most famous cryptocurrency, Bitcoin, has been one that has garnered attention for so long. Everyone seems to be monitoring the price changes in order to guide them on when to sell or hold their investment.
A Bitcoin sales overview for December recorded the sales of a high amount of Bitcoin. In December 2020, the price was close to its all-time high, and Bitcoin sales flourished.
In January and February 2021, the sales of Bitcoin were flourishing as well, and the market price went up as it reached its all-time high. This contributed to the Bitcoin buying spree, including some massive investments by large corporate investors.
However, the beginning of March has brought unprecedented changes to the market. The price of Bitcoin fell after the coin experienced a small price crash, and miners stopped selling their coins.
The market was making billions of dollars from the sales of Bitcoin daily in January. An overview carried out on price sales in January recorded the market sold over 20,000 BTC a day. For February, the market was selling over 5,000 BTC daily, amounting to millions of dollars for the market.
Suddenly the miners’ net position has turned green as they seem to be accumulating Bitcoin instead of selling for the first time this year.
What Could This Mean?
The recent price crash Bitcoin experienced is a noteworthy factor. In accordance with the law of demand and supply, halting sales at such a price crash will eventually result in its increased demand after a while. Once the demand goes high, the price for the leading digital asset’s sale will also rise, therefore correcting the fall it experienced.
Another explanation for the halt in Bitcoin sales could be a reduction in the number of coins available to miners. As the miners stopped selling, their net position was seen to have turned green, indicating an estimated accumulation of about 2000 BTC worth over $100 million.
The accumulation of the flagship digital coin on the path of the miners is expected behaviour as selling at a time where the market prices have dropped to a low point will only be a loss for them. It also seems like a good time to accumulate Bitcoinpending when the price returns to its previous high.