Glassnode which is an on-chain analytics provider revealed that Bitcoin miners are increasing and the long-term investors are taking away the profits. Although January has seen good selling from Bitcoin miners, Glassnode reports that the miner outflows have decreased in February so far.
The report also states that miners and longer-term investors will be the critical sellers of Bitcoin during the bull markets. As per the Glassnode reports, decreasing miner outflows can be bullish as miners will have either covered their costs of operation or stockpiling coins in response to Tesla’s $1.5 billion BTC investment,
“This suggests that miners have either completed adequate sales to cover costs, or could also mean they see Tesla’s vote of confidence as fair reason to keep a strong grip on their treasuries.”
As more and more miners are hodling BTC, Glassnode concludes that the majority of coins that are sold in the market are being carried away by longer-term investors.
The report depicts that ‘Elon Candle’ that came up last week is the single-largest daily candle in the history of BTC. It was posted a day after Tesla’s investment was announced. Hence, it resulted in a 24-hour price gain of $7,162 or 18.5% on Monday, Feb 8.
After analyzing Bitcoin’s Average Spent Output Lifespan (ASOL), an indicator measures the average age in days of all the spent transaction outputs. From this analysis, Glassnode concludes that long-term investors staked on Tesla’s investment news for profits.
“The Elon Candle has lifted the average age of coins spent from 30-days to 58-days, as shown in the ASOL.”
Glassnode also noted that Coin Days Destroyed (CDD), which is a measure of economic activity gave more weight to coins that were not spent for a long time. It also indicates that the older coins were being redistributed. Furthermore, Glassnode concludes that long-term investors are enjoying profits since October when the BTC price broke its $12,000 record.
Tesla’s investment has also bought up social signals for Bitcoin with some tweets that have surged Bitcoin to new highs after the investment news was announced. Even after the profit-taking, Bitcoin price continues to be bullish with BTC reaching its all-time high of roughly $49,600 on Feb 16.