According to data cited by Bitfinex analysts earlier this week, Bitcoin miners are slowing the pace at which they sell the world’s largest cryptocurrency by market capitalization.
Bitfinex, citing on-chain data from crypto analytics platform Glassnode, said that BTC flows from miner wallets to exchanges, said “selling is at a three-year low”.“It is a potential indication that miners are now either already transitioned or in the process of transitioning to a source of buying pressure,” the analysts continued, before adding that miners might be “hodling their bitcoin because they anticipate further (price) rises”.When Bitcoin miners move their BTC to exchanges, it is generally assumed they are doing this in order to sell them eventually.
So lower Miner to Exchange flows can be viewed as a proxy for lower Bitcoin miner BTC sales.Bitcoin miners are tasked with providing the computing oomph to power Bitcoin’s decentralized, permissionless, peer-to-peer and blockchain-based payments network.
They are rewarded for their efforts with newly minted Bitcoins. Miners are one of the most important Bitcoin market players, thus signs that sell pressure from this market segment is generally viewed as a bullish indicator for the BTC price.There has been growing excitement in recent weeks in light of the latest Bitcoin rally (BTC is up close to 40% this month and back in the $23,000 area) that the bear market of 2022 might now be over.Read more on cryptonews.com