Without a doubt, Bitcoin is the largest and biggest digital asset across the world, and so many people know this, including those mining it. Even though the asset has always been rocked by volatility since inception, it has not deterred people from jumping into the space. While Bitcoin came into the new year with a reassuring surge to touch $58,000, the digital asset has done little lately to impress traders and fanatics. In a recent market watch, the digital asset saw the bears run the market over, trading around the $44,000 price mark from the previous all-time high. Even though it has stabilized a little, most people are still skeptical about a bull run in earnest.
Bitcoin miners register a positive net position
Even though the price has bounced back a little, a new update in the Bitcoin market scene has shown that miners have started hoarding digital assets. The update noted that it started around the period when the digital asset went down. With miners refusing to sell all their mined assets, they have also achieved a remarkable return that has not been seen since the beginning of this year.
Various chain data has shown that miners’ net position is now positive after their hoarding spree. Glassnode was also on hand to give detailed information on how the miners achieved their positive net position. This is the first time Bitcoin miners would celebrate a positive net position, with the last one coming close on December 27 last year.
Analysts have mentioned that this is one of the most effective ways to return their positions to positive, and the miners took it with both hands, hence holding more assets that they are selling. With this, newly mined Bitcoin will be in their holdings instead of selling them.
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Bitcoin still rocked by volatility
If the miners continue with this pattern, the number of Bitcoin in supply would be minimal, and the price would adjust to the scarcity, moving upward in the process. Glassnode also mentioned that around the last week of January, a lot of miners in the Bitcoin space have been seeking their Bitcoin holdings in mass. This resulted from the surge in the price of the digital asset during the period, a feat that saw Bitcoin touch close to $42,000.
However, Bitcoin took it a notch up after the digital asset climbed up to claim its all-time high figure of $58,000. Most analysts and traders have hung the rise of the asset at that period to the influx of institutional investors into the Bitcoin market, with Microstrategy leading the charge. Tesla also continued to show support for Bitcoin after the Elon Musk-led organization announced a $1.5 billion buy of the largest digital asset.
With Bitcoin rising due to institutional participation, the price of the digital asset fell drastically after reports of mass selling by miners. Even anonymous addresses started selling their long-held Bitcoin as people began to cash out their profits over a long period.