According to data, Bitcoin miners, who were previously large spenders, have begun to shift into hodlers in the last two years.
According to Glassnode’s most recent weekly report, BTC miner behavior has shifted dramatically in the previous two years, with traditional spenders transitioning to hodlers. The miner netflow, which tracks the total amount of Bitcoin entering and departing miner wallets, is the key indication here.
It should be noted that this indicator differs from the standard netflow indicator in that it is measured from the standpoint of exchanges.
When the metric’s value is negative, it indicates that miners are withdrawing coins from their reserve. If such prices hold for an extended period of time, it may indicate that miners are currently selling their Bitcoin. This can be detrimental to the coin’s price.
On the other hand, positive readings indicate that miners are putting their BTC into their reserves. Such a tendency can be positive for the coin because it may indicate accumulating behavior. Now, here’s a graph that displays the recent trend in the value of BTC miner netflow:
Miners experienced very huge negative net flows until only a few years ago, as shown in the graph above. This suggests that miners were big spenders back then. However, things have altered between 2020 and 2021. These net flows have been mostly positive, indicating that miners have been constantly accumulating.
This trend indicates that miners, who were previously regarded to be putting selling pressure on the market, have now begun to transition into hodlers. This might be quite positive for BTC because it enhances the cryptocurrency’s scarcity.
The cause for the move could be newer and more advanced mining rigs, which have increased earnings. The research also mentions that the recent growth of Bitcoin miners into North America means that they can now make use of cheap finance and corporate equity, allowing them to sustain their operations for a longer period of time.
At the time of writing, the price of Bitcoin is hovering around $48.8k, up 3% in the last seven days. The value of the cryptocurrency has decreased by 17% in the last month.
The chart below depicts the price trend of BTC over the previous five days.
