The amount of Bitcoin (BTC) held by the miners exceeded 1.82 million BTC, exceeding $ 21 billion. Data from Glassnode shows that Bitcoin miners own 1.82 million BTC, equivalent to about $ 20 billion. Data can be a major catalyst for BTC or seen as a negative factor in the short term.
Catalyst or Sales Press Source?
Cryptocurrency market data provider CryptoCompare said miners’ Bitcoin assets reached a two-year high, based on Glassnode’s data. The researchers at CryptoCompare said:
“Bitcoin miners are holding more Bitcoin than any other time in the past two years, while the leading cryptocurrency continues to operate at over $ 11,000.”
There are two ways to analyze data. First, this could be a positive catalyst, as it shows that miners are aggressively recovering the BTC they are mining. Second, it can also mean that miners currently own large amounts of Bitcoin, which can be a source of selling pressure.
Two Unique Sales Presses
In May, veteran analyst Willy Woo announced that there are two unique sources of selling pressure in the Bitcoin market. He said:
“There are only two unique selling pressures in the market: miners and traders taxing, selling to the market.”
If miners hold more Bitcoin than usual and start selling over time, selling pressure can arise on the entire cryptocurrency market. Miners selling Bitcoin are different from traders who sell or buy Bitcoin. It puts additional pressure on the market.
It remains unclear whether the miners’ holding Bitcoin, which is at its highest level in two years, will create a stronger base for a long rally of the cryptocurrency market or a retreat. It should be noted that shortly after Bitcoin miners reached a local peak in 2018, BTC saw a deep correction below $ 4,000.
It is possible for miners to hold more Bitcoin than usual because other miners and mining pools do this. The data shows that relatively small mining pools hold $ 100 million in Bitcoin. CryptoCompare stated that:
“The third reason miners accumulate more BTC is because of mining pools that accumulate unusually large amounts of Bitcoin.”
Until the Bitcoin market sees a huge response from sellers, at least in the medium term, BTC accumulation is generally viewed as positive by miners.