The first quarter of 2021 is coming to a close, but the world for Bitcoin has been anything but monotonous. In reality, while the digital commodity has hit a new all-time high four times in the last ten weeks, the market has not been too bullish.
The maps have been continuously corrected, with the bulk of them happening in February, with earlier studies showing that long-term hodlers and miners have regularly taken profits in 2021.
KogoCrypto recently highlighted a shift in sentiment among miners, but with the crypto-price asset’s approaching $60,000 at press time, miners’ operation does not generate any more bearish conditions for Bitcoin.
Bitcoin Miner Outflow and MPI – Are we set for the next rally?
The total volume of BTC transferred from miners’ wallets to exchanges was high during the end of January and February, according to CryptoQuants’ All Miners Outflow table.
Outflows of 7,189 BTCs were reported on 16 March, for example, but this number was slightly lower than the 15k BTC outflows recorded on 25 February and the 16.5k outflows recorded on 29 January. It is clear that miners have been selling in order to either pay for operating expenses or to benefit from the bull market.
However, the Miner’s Position Index, or MPI, seemed to indicate that miners’ selling sentiment was declining once more.
According to the MPI table, the ranking had fallen to 0.38 at the time of publication, with every value less than 2 indicating that the miners were selling less. As previously stated, the most recent high rating of 1.75 was observed on March 16th, when 7,189 BTC outflows were reported.
Miners have also started to accumulate Bitcoin over the last few weeks. Miner reserve levels are high in parallel with BTC’s price, reducing selling pressure on the miners’ side.
Possible Ripple Effect?
With miners and their market accumulation, the bullish argument for Bitcoin just strengthens, as retail traders compete with one another to reach a Bitcoin spot higher on the charts. A lack of price corrections will result in another supply crunch, and demand interest will undoubtedly push Bitcoin’s price upwards in the market.
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