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Bitcoin Miners Not Selling Their Funds, Here's Why This Might Be Bullish

Wed, 10/13/2021 - 13:33
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Arman Shirinyan
The absence of selling pressure from miners might be a bullish sign for the crypto market
Bitcoin Miners Not Selling Their Funds, Here's Why This Might Be Bullish
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According to a tweet from the CryptoQuant CEO Ki Young Ju, cryptocurrency miners are staying on the "bull side" even after the mining crackdown in mainland China. According to on-chain data provided, a number of miners are progressively recovering, with the U.S. overtaking China in network hashrate in addition to the absence of selling pressure coming from their wallets.

Previously, U.Today reported that miners have "moved" to the U.S., with a significant hashrate increase coming from the country after complete destruction of the industry in mainland China. With a recovered hashrate, miners' wallets face accelerated inflows of various cryptocurrencies. Though wallets show a recovered inflow rate, the outflows seem to be nonexistent in the current market conditions.

Why are miners holding?

The main reason for the absence of selling pressure from miners may lie in the overall market sentiment and the most recent Bitcoin movements. Spikes in miners' position index have been correlating with strong and volatile Bitcoin movements.

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The most recent sell-off coming from miners was observed back in January 2021, when Bitcoin formed the first spike in the new bullrun. After the sell-off took place, BTC retraced by 25% and recovered the previous price only in February.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.