- Bitcoin mining companies are slowing BTC sell-offs as miner earnings continue to soar.
- Private investors remain optimistic.
Bitcoin miners have long been subject to the volatility of the cryptocurrency market. This has resulted in cases where miners have liquidated their businesses.
But in most cases these miners have preferred to keep their positions.
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Step on the brake
However, public mining companies were observed to be consistent in their behavior. According to Blockridge data, all mining companies sold 100% of theirs businessesin the second half of 2022.
However, for the first time in more than six months, the liquidation ratio fell below 100% in March, before falling further to 95% in April. This indicates that these companies had slowed down in selling their BTC holdings.
Source: Blocksbridge
Well, the drop in the selloff can be attributed to the fact that business confidence in BTC has been restored as the price of the coin has surged over the past three months.
Due to the rise in the price of BTC, miners’ earnings also witnessed a spike.
Source: Blockchain.com
Speaking of mining pools, Foundry Pool, one of the largest mining pools in the industry, turned out to have a successful run in terms of mining blocks. According to btc.com data, the pool has managed to mine 8,060 blocks in the past six months.
Source: btc.com
The mining companies and pools have just started holding their BTC and the private investors don’t seem to be stopping their accumulation.
Glassnode’s data indicated that the number of addresses with more than 0.1 coins has reached an all-time high.
Source: glasnode
No pressure
At the time of writing, the selling pressure on these investors was relatively low. According to data from Santiment, BTC’s 30-day MVRV ratio had turned negative.
This indicated that most short-term holders were not profitable and had no incentive to sell.
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On the other hand, BTC’s long/short divergence continued to increase, indicating that the majority of addresses on the network were long-term holders of Bitcoin.
Source: Sentiment
Despite these factors, short positions on the network continued to grow. For example, take a look at the graph below.
Source: mint glass
