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Bitcoin’s reputation as a long-term commodity is unquestionable. To date, 2021 has been a year of many ATHs for the world’s biggest cryptocurrency. Despite its latest price correction, which saw Bitcoin return to the $52k mark, the currency has recovered and bounced again in less than a week. This has also contributed to the coin’s overall bullish stance as we approach April.
Surprisingly, most of Bitcoin’s investor base is also in hodl mode. This is not only an example of market confidence in BTC’s long-term prospects, but also that the bull run is not yet over. Miners are a significant demographic of the Bitcoin ecosystem. Since the block incentive was halved in 2020, small and medium-sized mining operations questioned whether the BTC environment was viable.
However, with the price surging in the latter months of 2020 and as 2021 began, miners are once again heavily supporting and hoarding the coin. According to CryptoQuant info, miners are not selling their BTC and are instead holding onto the coin.
A meaning greater than 2 on the Miners’ Position Index shows that miners are willing players in the seller’s business. However, when the ratio of BTC leaving miner wallets is compared to its 1-year moving average, MPI shows a low value of -0.32, supporting the statement that in today’s economy, miners are behind the high hodl sentiment.
Given the latest price correction, Bitcoin’s seller’s market isn’t booming, and most investors expect the currency will regain a spot at or above its current ATH throughout the coming weeks.
This has also resulted in more BTC being transferred from exchange wallets to cold storage solutions. This phenomenon was demonstrated by Glassnode’s numbers, which showed that the BTC balance on exchanges had just reached a 2-year low of 2,398,947.544 BTC.
In addition to these facts, according to reports that emerged yesterday, approximately 12,300 BTC worth over $650 million left Coinbase Pro wallets.
In comparison to BTC’s 2020 results, the current price point of around $55k is exorbitant. However, in 2021 terms, this is a very modest price point considering the considerable bullish momentum that allowed the new ATH earlier in the month.
This price correction has provided an ideal entry point for new traders, and one might argue that accelerated buying about $52k has added to the ongoing rebound. Given BTC’s chances of reaching $100k by the end of the year, if scarcity models like S2F are used, there is plenty of space for price speculation above its ATH in the short term, and the market’s hodlers are well aware of that.