The data shows that Bitcoin miners have eased their dumping over the past month, now only selling at a 50% rate compared to early September.
Bitcoin Miner’s net position change is now worth 4.4k BTC per month
According to Glassnode’s latest weekly report, BTC miners were selling at a rate of 9k BTC per month at the beginning of last month.
The relevant indicator here is “miner net position change”, which measures the total net amount of Bitcoin withdrawn or deposited by miners over the last 30 days into or out of their wallets.
When the value of this metric is positive, it means that miners have been transferring coins out of their pool for the past month. This trend, when prolonged, can be a sign of a build-up of its chain validators and thus can be bullish for the price of the crypto.
On the other hand, the indicator having a negative value implies that wallets in this cohort have lost a net number of coins recently. Since miners usually withdraw their BTC to sell, this type of trend can be bearish in terms of price.
Now, here’s a graph showing the trend of Bitcoin miners’ net position change over the past two years:
The value of the metric seems to have been red in recent days | Source: Glassnode's The Week Onchain - Week 40, 2022
As you can see from the chart above, the Bitcoin miner’s net position change has been deeply negative for quite some time now. This suggests that the cohort has been in a shedding phase for the past few weeks.
In early September, the indicator peaked as miners distributed their coins at a rate of 9k BTC per month. Since then, however, miners have slowed down, now only withdrawing 4.4k BTC from their wallets.
That’s still a significant amount of selling pressure, but it’s still 50% less than it was at the start of last month.
Due to the bear market, miners’ incomes have come under severe pressure, leaving them with no choice but to dump their reserves. But this recent downward trend in its distribution may suggest that its situation has begun to ease somewhat.
At the time of writing, the price of Bitcoin is hovering around $20.1 thousand, down 1% in the last week. Over the past month, the crypto has gained 1% in value.
Looks like the value of the crypto has surged up over the last day | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Glassnode.com