On-chain analytics provider Glassnode has released data showing that Bitcoin miners are building up while long-term investors take profits.
Despite strong miners ‘sales in January, Glassnode’s report shows miners’ drains so far dried up in February.
Chart – Glassnode.com
The report claims that miners and longer-term investors are the two main sellers of bitcoin during bull markets. According to Glassnode, declining miners’ outflows can be viewed as bullish as miners have either already covered their operating costs or have stocked coins in response to Tesla’s $ 1.5 billion Bitcoin investment:
“This suggests that miners have either made reasonable sales to cover costs or could mean they see Tesla’s vote of confidence as a fair reason to keep their treasuries tight.”
Glassnode concludes that the majority of the coins sold in the markets are being dumped by longer-term investors.
The report mentions last week’s Elon Candle. The largest daily candle in BTC’s history was released the day after Tesla announced its investment, causing it to see a 24-hour price increase of $ 7,162, or 18.5%, on Monday, February 8th.
Looking at Bitcoin’s Average Lifespan (ASOL), an indicator that measures the average age in days of all transaction spendings, Glassnode concluded that long-term investors benefited from Tesla’s news for profit.
“The Elon candle raised the average age of coins in issue from 30 days to 58 days, as shown in the ASOL.”
The company found that Coin Days Destroyed (CDD), a measure of economic activity that adds weight to coins that have long been unissued, also shows that older coins are being redistributed. Glassnode concludes that long-term investors have been taking profits since October – when BTC collapsed above $ 12,000.
Tesla’s investment has also resulted in record social signals for Bitcoin. Twitter activities reached new highs after the vehicle manufacturer’s investment was announced.
Despite the profit-taking, the price of Bitcoin continues to make profits. BTC is testing its recent all-time high of around $ 49,600 on February 16.