Miners are Bullish
If we get a replay on this metric - higher prices ahead
Miners are beginning to hoard bitcoin.
It’s a simple supply issue when it comes to bitcoin. If the available supply of bitcoin begins to dry up, then assuming demand remains the same, then price will rise.
We saw that unfold most recently when the price of bitcoin almost touched $60k.
And we’re beginning to see it again among top miners. In fact, it looks as if miners are beginning to hoard even more according to CryptoQuant. You can see it in the chart below.
The blue line is the amount of BTC held by miners. The higher the line goes, the more BTC being held by miners.
After a steady decline in reserves over the second half of 2020 the amount being held by miners quickly changed direction. It’s a move that happened during the January selloff. Which means miners started to limit the amount of BTC for sale in the market as prices were dropping.
This change in sentiment reduced selling pressure.
And in response, the price per bitcoin quickly moved higher towards $60k as miners were hoarding.
What’s more, in the past week it appears we’re getting ready to see this same pattern unfold.
We witnessed a strong selloff and now miners are holding onto their BTC. This can mean we get a replay of what we saw happen after the January selloff.
Continue to keep an eye on miner reserves in the coming days to see if this current trend continues. If it does, expect the price to rebound once again.
Your blockchain translator,
Benjamin
Below is our daily exchange flow data. This is a great gauge for understanding if BTC, ETH and USDT are flowing into exchange or leaving. If BTC and ETH are entering exchanges it can generally be viewed as bearish. The opposite scenario is bullish.
When USDT is flowing into exchanges it’s typically viewed as bullish. The opposite scenario is bearish.
This should only be used as a general gauge. Tagging the exact wallets these flows move into or out of helps improve the reliability of this data, which is what we do at Jarvis Labs. To date we have over 800 market mover wallets and 16 million wallets tagged all together. Consider us your on-chain trackers.
