Bitcoin miners scramble as long-term investors take profits

On-chain analytics provider Glassnode has released data revealing Bitcoin miners are piling up while long-term investors take profits.

Although January saw strong sales from miners, Glassnode’s report shows that miners’ releases have dried up in February so far.

The report claims that miners and long-term investors are the two main sellers of Bitcoin during bull markets. According to Glassnode, the decline in miner exits can be seen as bullish, with miners already covering their operating costs or accumulating coins in response to Tesla’s $ 1.5 billion investment in Bitcoin:

“This suggests that the miners have either made adequate sales to cover costs, or it could also mean that they see Tesla’s vote of confidence as a good reason to keep a strong grip on their treasures.

As miners now hang onto their BTC, Glassnode concludes that the majority of coins sold in the markets are offloaded by longer-term investors.

The report notes last week’s ‘Elon candle’ – with the largest daily candle in BTC history released the day after Tesla’s investment announcement was announced, resulting in a 24-hour price gain of $ 7,162 or 18.5% on Monday February 8. .

Looking at Bitcoin’s Average Spent Production Lifespan (ASOL), an indicator that measures the average age in days of all past transaction exits, Glassnode concluded that long-term investors were capitalizing on Tesla’s news. to make a profit.

“The Elon candle reduced the average age of coins from 30 days to 58 days, as shown by ASOL.”

The company noted that Coin Days Destroyed (CDD), which is a measure of economic activity that gives more weight to coins that have not been spent for a long time, also shows that older coins are being redistributed. Glassnode concludes that long-term investors have been taking profits since October – when BTC came back above $ 12,000.

Tesla’s investment also generated record social signals for Bitcoin, with Twitter activity reaching new heights following the publication of the automaker’s investment.

Despite the profit taking, the price of Bitcoin continues to make gains, with BTC testing its recent all-time high of around $ 49,600 on February 16.