Bitcoin stands as the largest cryptocurrency the world has to offer, and most people know about it in some way or another. However, in one of its “healthy corrections”, the asset crashed by 20% in value, going as low as under $44,000 this Sunday.
The price has bounced back, thankfully, and is now trading at around $47,700 at the time of writing. However, this large drop in price has had a significant effect on crypto miners.
For the first time since late December of last year, #Bitcoin miners’ net position change reverted back to positive, indicating miners selling pressure may subside.
— Bloqport (@Bloqport) February 28, 2021
Hodling’s Once More The Name of The Game
Glassnode, a notable on-chain market analysis firm, published a new chunk of data showing Bitcoin miners have once again started to revert their net positions back to positive. This marks the first time crypto miners have had a positive net position ever since the 27th of December, 2020.
This is an important step in trying to regain positive price action, as the miners themselves have decided to start hodling again. This, in turn, will see fresh Bitcoin start to be held instead of being sold. This decreases the supply, which will hike the price up accordingly.
Glassnode revealed that during the last week of January of 2021, crypto-miners have been mass-selling their various Bitcoin holdings. This is primarily thanks to how well the asset was doing at the time, as the asset’s been climbing in price, more or less, since this year started.
Bitcoin’s Typical Price Action
In February, the asset recorded a new all-time high of $58,000 as institutions showed ever-increasing levels of interest in the asset. Microstrategy bought up another $1 billion in Bitcoin, with Tesla joining in with a purchase of $1.5 billion.
As the price of Bitcoin rose to new heights, the final week of February saw massive selling pressures smash the asset’s price down nice and hard. Anonymous BTC transactions surged amid retail clients selling their Bitcoin holdings to cash in on their newly-earned profits.
China’s Miners Starting to Hold Bitcoin Again
As for who’s the biggest fish in the crypto mining arena, that would be China. Over 50% of the Bitcoin network’s hashrate is situated within the nation. While there have been some hiccups in regard to energy supply and regulatory pressures, the nation still boasts an absolutely flourishing crypto mining industry.
This data reveals that the Bitcoin miners from China are the ones that have opted to hoard their crypto holdings instead of selling them like before. With the net positions of miners becoming positive, it’s clear that the selling intensity of these miners are seeing a slow, steady decrease.