ByteTree: miners began selling more bitcoins than they mined
According to ByteTree, amid the crisis in financial markets, miners began selling more bitcoins than they mined. However, BTC find their customers, which may indicate the beginning of a bullish trend.
Analysts at ByteTree, which monitors the indicator of the changing stock of miners’ coins (MRI), reported that over the past three weeks this indicator has remained above 100, which coincides with a period of high bitcoin volatility. On March 12, the fall of traditional and cryptocurrency markets began – bitcoin fell to $ 5,600, and then to $ 4,500. Over the next week, the first cryptocurrency rate recovered slightly and is now at $ 6,675.
When the MRI exceeds 100, it means that miners sell more than they mine and use their stocks. Similarly, if the MRI is below 100, then miners accumulate coins, selling less than they mine. As prices gradually rose after a sharp decline, industry participants also began to show increased interest in buying crypto assets. As a result, miners had an incentive to fuel the market by selling accumulated coins.
Mining pools are responsible for the largest deliveries of BTC to exchanges, and have a significant impact on prices. Some see the market as a positive signal.
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“When the BTC price can rise sharply from local lows, and buyers can buy additional BTC sold by miners, this is considered a sign of strength throughout the market,” said Connor Abendschein, a cryptocurrency analyst at Digital Assets Data.
According to ByteTree founder Charlie Morris on Twitter, miners continued to sell off their stocks on Wednesday.
“Miners sold 2,788 BTC against 1,588 mined coins, flooding the market with bitcoins, but the market accepted them. This is a bullish signal, ”he wrote.
During Asian trading, the first cryptocurrency fell from $ 6,700 to $ 6,500, possibly due to miner sales, but later that day the price recovered. Some analysts are of the opinion that the one-day deviations in net sales of miners are often too small to make a correct judgment about the bullish mood of the market.
“The sales volume of 2,788 BTC on Wednesday was not statistically significant enough to be significant for serious Bitcoin price movements,” said Alexander Blum, chief operating officer of fintech company Two Prime.
However, since miners on average sold more coins during price recovery, this may indicate market strength. In other words, the price rally may have further prospects. However, cryptocurrency remains vulnerable to attacks of dumping risky assets in traditional markets.
Global stocks have recovered over the past couple of days, mainly due to huge monetary and fiscal stimulus from the United States. The spread of coronavirus does not show signs of slowdown, and markets have yet to experience real economic damage from the pandemic, which could be much larger than projected.
“If you think that an economic crisis is taking place, you are mistaken,” said cryptocurrency skeptic Peter Schiff. “This is a crisis in the healthcare system. This will be followed by an economic crisis that will be triggered by monetary and fiscal stimulus. The crisis will be not only worse than the Great Recession, but also the Great Depression. ”