Hodln: Bitcoin miners hold on to BTC holdings in a big way
New data from Glassnode shows that Bitcoin miners are increasingly holding on to their earned BTC rewards, while long-term investors took notice of their profits.
After last week’s news of Tesla’s billion-dollar investment in Bitcoin made high waves in the crypto space, the BTC price hit a new all-time high (US$49,708.58) by scraping the 50,000 mark. Now, new data from Glassnode shows an interesting development. According to the data, Bitcoin miners by Crowd Millionaire increasingly held their BTC holdings, while long-term investors tended to take profits. Things looked different in January. The miners‘ sales even caused the price of the digital store of value to briefly fall below the 30,000 mark again.
The report by the data processors comes to the conclusion that the reduced selling pressure of Bitcoin miners could have two reasons. First, it is possible that miners have covered their costs with the previous BTC sales in January, so that there is no need for further sales. Another explanation could actually result from a signal of confidence from Tesla. The US company’s billion-dollar investment could have prompted bitcoin miners to hold on to their BTC holdings. More specifically, the report said:
‚This suggests that Bitcoin miners have either made sufficient sales to cover costs. Or, that they see Tesla’s leap of faith as a justifiable reason to keep a tight grip on their coffers.
Record sales for bitcoin miners
Meanwhile, Glassnode announced a new record in a Twitter post on 11 February. According to this, Bitcoin miners had generated a turnover of 4 million US dollars within one hour.
This record seems even more impressive when you consider that it was set after last year’s halving. Bitcoin halving is a four-year cyclical process in which BTC rewards are halved per new block generated. The last time this happened was in May 2020.