Bitcoin under selling pressure: miners push BTC rate
While the Bitcoin price remains on hold, miners are long digging into their digital wallets and are constantly selling large amounts of BTC. The selling mood depresses the price and makes a renewed breakout more difficult. The market update.
After the hurdles of the last few weeks, the cops seem to have cleared the virtual trading floor
With a minus of 1.5 percent compared to the day, the Bitcoin Rush price slipped to 31,469 US dollars at the time of going to press. On a weekly basis, the largest cryptocurrency loses almost 13 percentage points.
Even if Bitcoin had to give way in consolidation mode for almost two weeks, the digital currency has fallen more than softly. Just a few months ago, the Bitcoin course finally worked its way off the seemingly invincible fear level of 10,000 US dollars. The fact that the cryptocurrency is holding up well above the 30,000 US dollar mark despite the sales is clearly an interim success. The newly gained ground forms a stable foundation for the next section of the rally. However, miners are currently counteracting the hoped-for outbreak, who realize profits due to the high profit margin and convert their digital gold holdings into cash.
Bitcoin miners are putting pressure to sell
At least this is the conclusion reached by Ki Young Ju, CEO of the crypto analysis service provider Cryptoquant. In a tweet he explains that miners have „moved an unusual amount of bitcoins lately“. Looking at the Miner’s Position Index, it appears „that they have been making profits continuously since 42k“. This development confirms Ju’s bearish stance.
The Miner’s Position Index developed by Cryptoquant measures the “Bitcoin Outflow” of the miner’s wallets. A value greater than 2 indicates that the majority of miners are selling Bitcoin. As the following graphic shows, the current MPI confirms Ju’s statements with a value of just over 4.
Since November last year, the MPI has been rising steadily in waves. The fluctuations have increased with the use of the Bitcoin rally. No wonder: after all, the profit margin increases with the Bitcoin rate. It is not uncommon for miners to sell constant amounts of BTC to cover operating costs such as electricity, maintenance and rents. The drastic increase in the MPI in recent weeks is due to profit-taking.
Since the middle of December the MPI has not been below 0. Thus miners have been exerting permanent selling pressure ever since. By increasing the amount in circulation through BTC sales, they keep the Bitcoin price development in check again and again. The Miner’s Rolling Inventory (MRI) developed by Bytetree also proves this behavior. The MRI puts the miner’s expenses in relation to the newly generated Bitcoin. At currently 160 percent, the indicator shows that miners are currently selling more Bitcoin than they are mining.