Bitcoin (BTC) miners are piling up en masse, is the capitulation over?

According to on-chain data collected by CryptoQuant, it appears that Bitcoin (BTC) miners have shifted from sellers to holders. In fact, they now have the highest amount of BTC since January 2021. Will the impact of the turbulence of the past few weeks fade?

Miners collect Bitcoin (BTC)

This is a relatively interesting indicator of the cryptocurrency market trend: the behavior of bitcoin miners (BTC). Although they had recently shown strong signs of capitulation, they mainly sold the BTC they had mined, the trend seems to have completely reversed.

As a reminder, capitulation occurs when the holders of an asset are tired and give up their previous winnings. by selling their positions in a bear market. After several weeks of significant latent shortfall in cryptocurrencies, many investors have already started selling at a loss.

And this was especially the case for miners, who sold their bitcoins en masse last June during the free fall from $30,000 to $20,000. However, as a recent analysis by CryptoQuant shows, it seems that their market sentiment has been reversed: the amount of BTC in their wallets. reached a new high since January 2021.

Bitcoin Miners Reserve (BTC)

As of July 29, the combined balance of all recognized Bitcoin miner wallets amounted to 1,865,272 BTC. Although there was a slight decline in early August, with a total of 1,864,842 BTC on August 3, the increase is still significant. Between early July and today, this figure has increased by 0.37%, or 6,885 BTC.

In other words, it looks like the miners’ bitcoin reserves have the capitulation completely absorbed of the month of June. This was especially felt in the foundations of the network, with: a drop in hash rate which reflects the abandonment of the less profitable miners.

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Miners are selling less and less BTC

Other indicators also attest to the fact that: the phase of the capitulation of the miners may come to an end. One is the amount of BTC transferred from authorized miners’ wallets to exchanges.

bitcoin to exchange miner

Influx of Bitcoin (BTC) miners to exchanges

It’s easy to see that the market’s sudden drop last June, with Bitcoin moving from $30,000 to less than $20,000 in a matter of days, an impact on the behavior of minors. As the many huge spikes in June indicate, miners have relinquished their positions at a loss and discharge their bitcoin reserves.

However, Bitcoin price has stabilized in recent weeks. This clearly helped to reduce sentiment in the market and at the same time the coldest miners. As this chart indicates, since this dive they have not don’t sell more than 1000 BTC per day to exchanges. In addition, the influx of miners to exchanges on August 2 was only 359 BTC.

Finally, we will look at a final indicator, somewhat similar to the previous one. The Miners’ Position Index (MPI) also provides information on: the spending and saving behavior of bitcoin miners. In a nutshell, it is the ratio of the daily total of miner outflows (in USD) to the one-year moving average of that same total.

mpi bitcoin

Bitcoin Miners’ Position Index (MPI)

According to our on-chain analyst prof. TV channelFeatured regularly for Cryptoast and on the private group Le Grille-Pain, this chart is an excellent indicator to understand the behavior of minors:

“A high value shows that miners are sending more coins from their identified wallets than usual, indicating a potential sell-off. »

Indeed, the main spikes correspond either to massive profit-taking by miners in the bullish phase, or conversely to a capitulation in the face of the fall. Currently, the peaks diminish rather. As a result, it seems that the trend for the month of July is to limit spending and to accumulation.

Finally, it is important to remember that minors naturally very wasteful behavior. And for good reason, the sale is the only way to cover the electrical costs associated with Bitcoin production.

👉 Also in the news – Capitulation of Bitcoin (BTC) miners – New autumn expected?

Source: CryptoQuant

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