Miners

Miners started saving bitcoins, which is good for BTC

Navigation

Is Bitcoin Mining Profitable In The Uk?? – Cryptocurrency For Beginners

Miners started saving bitcoins, which is good for BTC

Miners started saving bitcoins, which is good for BTC
CONTENT

  • The outflow of bitcoins from mining pools to crypto-exchanges shows an inverse correlation with the MTC rate.

  • Perhaps miners are starting to accumulate long-term reserves of MTC.

  • Mining profitability remains an important issue.

International consortium of news organizations developing transparency standards.

Recently, the volume of bitcoin transfers made from mining pools to crypto exchanges has significantly decreased. This is a good sign for BTC..

It looks like Bitcoin has another ray of hope. As statistics show, recently miners began to transfer significantly fewer mined coins to cryptocurrency exchanges..

Miners started saving bitcoins, which is good for BTC

When the whales move …

Cryptanalyst Cole Garner (@ColeGarnerBTC) shared this data with his followers on Twitter. He cited a graph from the popular analytical resource Glassnode, which clearly displays the inverse correlation existing between such two parameters as the bitcoin rate (BTC) and the volume of outflow of coins from large mining pools directly to cryptocurrency exchanges..

Judging by the graph, the periods when miners are most actively transferring their coins to crypto-exchanges can serve as a leading indicator in determining the further price dynamics of the BTC rate. As the chart demonstrates, there is a certain tendency according to which, after such moments, a significant drawdown of Bitcoin begins..

This opinion is not without foundation, since miners are certainly one of the largest whales on the crypto market, and the sending of BTC to exchanges indicates their intention to dump coins. Accordingly, such moments can be an indication of the formation of local maximums for bitcoin.

Meanwhile, a sharp drop in the rate of outflow of coins from miners’ addresses (right side of the graph) can determine the strengthening of the bitcoin rate.

A beam of light for bulls

Thus, since the beginning of May, the volume of the outflow of funds from mining pools to crypto exchanges has decreased to the lowest levels since August 2019. A similar trend, if supported, could cheer up the BTC bulls, promising a new rally for the currency..

However, the data coming from the mining sector is not easy to interpret unambiguously. So, the other day the BeInCrypto editorial staff told a completely opposite story. Then we wrote that the recent collapse of the Bitcoin exchange rate could have been triggered by a massive outflow of coins from unknown mining pools. Also a little earlier, statistics appeared on Twitter, according to which miners sold 673 bitcoins more than they mined over the past week..

Miners started saving bitcoins, which is good for BTC

The latest news goes against these alarming statistics, and it may calm the crypto community a bit, who, even before the May halving, were seriously worried about the threat of a massive exit of miners from the game due to the painful drop in profitability and profits..

If the optimistic thesis that miners are still starting to accumulate long-term reserves of bitcoins continues to receive new confirmation, this should support the BTC. Crypto enthusiasts hope that now we are simply observing transient adaptation of miners to new conditions. Weak players will indeed leave the market, but strong and effective miners will remain in the game who have carried out the necessary equipment upgrades.

So what is happening in mining pools now? Do miners capitulate or accumulate stocks of bitcoins? Share your opinion in the comments and join the discussion in our Telegram channel!

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

Similar articles

Similar articles