Bitcoin (BTC) miners are now selling off fewer of the coins they mine compared to last month, signaling a more optimistic outlook on the future among some of the network’s most important players.
The finding that miners are selling less bitcoin was shared in Glassnode’s latest The Week Onchain report, where the crypto analytics firm said that the 30-day change in miner wallets shows that 50% fewer coins are now being sold by miners compared to in early September.
Digging further into the data, however, Glassnode found that a “great majority” of the selling by miners was linked to miners associated with the major mining pool Poolin.
Poolin was until recently one of the largest Bitcoin mining pools, accounting for 12% of the hashrate at the start of September. However, its hashrate started plummeting shortly after, when the mining pool admitted that it was experiencing “liquidity problems due to recent increasing demands on withdrawals.”
Today, Poolin accounts for only 3.7% of the Bitcoin network’s hashpower, Glassnode’s data showed.
The net position change by miners is seen as a key on-chain metric to watch for Bitcoin investors, given that it gives a clue about the conviction of some of the most heavily invested market participants. However, selling by miners has also been seen as necessary before a new bull run can begin, and many traders have patiently waited for a so-called ‘miner capitulation’ to happen.
“Notably stable” bitcoin price
Commenting on the state of the bitcoin market more broadly, Glassnode said in its report that the price has remained “notably stable” in the face of a challenging macroeconomic environment.
“Such quiet periods are very uncommon for Bitcoin, with semblance to both pre-crash November 2018, but equally to pre-rally March 2019,” the report said.