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Bitcoin Miners Dumping Half A Million BTC Couldn’t Dent Bull Rally

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Bitcoin price is still fighting to break back above $60,000 per coin, but things could push higher according to miner behavior. After dumping more than a half a million BTC on the market during the bull rally, and barely being able to make a dent in terms of price decline, miners might have finally given in and started holding their coins for the sudden surge ahead.

Miners Dump More Than Half A Million BTC Since 2021 Started

Bitcoin isn’t just an asset to invest in, its a blockchain network and cryptocurrency ecosystem. It is digital gold, and potentially, so much more. The leading cryptocurrency by market cap has emerged as the “stimulus asset,” thriving in the current economic environment.

RELATED READING | BITCOIN BANDWIDTH: THE BIGGEST MOVE OF 2021 IS NEAR

Since the global pandemic began, and efforts to thwart economic impact first resulted in unprecedented money printing, the cryptocurrency’s price per coin has ballooned. From the onset of the pandemic through now, the price per BTC has risen from under $4,000 to more than $61,000 at the current peak.

bitcoin miners btc bull rally

Even with more than half a million BTC dumped, miners couldn't dent the bull run | Source: BTCUSD on TradingView.com

On the way up, a critical cog in the Bitcoin puzzle, miners, have been dumping BTC all along. In total, miners have poured more than 666,000 BTC into the market during a time when few are selling their coins, and exchange reserves continue to dwindle.

Even with so much supply coming from miners, the uptrend only continued higher and higher. The sell pressure had next to no impact amidst so much FOMO buying. But something has happened since, that has caused miners to begin holding BTC again, accumulating reserves for what is further expected mark up.

Lack of Supply From Miners Could Drive Further Bitcoin Mark Up

According to the Miner Position Change chart from glassnode, via The Weekly Report from Arcane Research, miners have increased their positions in Bitcoin substantially after offloading what they could during the rally.

RELATED READING | DATA: BITCOIN BULL RUN MAY BE LESS THAN ONE-QUARTER COMPLETE

Bitcoin price remains within striking distance from local highs, suggesting that miners are expecting more price appreciation ahead, and plan to sell coins later on instead of at current levels. Miners represent an important role in supply versus demand – a dynamic that is heavily in favor of demand currently.

BTC miners position index

Miners have stopped selling BTC after dumping some 666,000 BTC on the market | Source: Arcane Research

Cryptocurrency mining is an energy-intensive operation with large up front costs. To fund normal operations, or to free up capital to bolster processing power with new machinery, these miners must sell BTC or tap into cash reserves – if they have them.

Miners selling more than 666,000 BTC should put these operations in a much healthier position to hold for what’s ahead, and that could be exactly what is happening now.

Featured image from Pixabay, Charts from TradingView and glassnode



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Dogecoin, CryptoCurrency Reddit communities surge as crypto euphoria heats up

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With much of the market fixated on Bitcoin’s (BTC) sudden price correction over the weekend, retail interest in digital assets appears to be on the rise, according to the latest statistics from Reddit.

The r/dogecoin community added 145,859 weekly subscribers, according to Subreddit Stats. The gains are hardly surprising given DOGE’s dramatic rally over the past week. The meme-based cryptocurrency skyrocketed 400% during that period, bringing its yearly returns to an eye-watering 5,000%.

DOGE’s parabolic rally moderated over the weekend, with social media sentiment data from The TIE and Cointelegraph indicating more pain in the short term. That’s because price action is often correlated with social media engagement; a decline in the latter is sometimes a precursor to bearish price action in the near term. 

Meanwhile, the r/CryptoCurrency community, which is devoted to all things digital assets, added 86,838 new subscribers during the week. New community members were welcomed by platinum award recipient “mirza1h” on Sunday. In a subreddit post, miraza1h said:

“Past week has been insane in the crypto world, so naturally things here weren’t like they normally are. Your curious posts/comments may have been ignored a bit. In the weekend things are a bit more chill, so feel free to ask us anything you want.

The user also introduced new subreddit followers to Moon, the native token of the r/CryptoCurrency community.

Much like DOGE, the overall cryptocurrency market limped into Sunday’s session, having declined by a cumulative $386 billion, according to CoinMarketCap. The digital-asset market cap briefly fell below $1.9 trillion before recovering to around $2 trillion.

Massive shakeouts are nothing new for seasoned cryptocurrency investors. Even during bull markets, declines of 20% or more are fairly common, especially after major rallies. Speculation about an abrupt decline in Bitcoin’s hash power and the possibility of U.S. regulatory action against crypto-friendly banks may have contributed to the decline on Sunday.

Even with the latest decline, the cryptocurrency market is still double the size it was in January when it first crossed the $1 trillion milestone.