The latest mining data shows that miners have switched from selling rewards to accumulating amid supply shortages on exchanges.
Miner stopped supplying
According to data from crypto analytics firm Glassnode, Bitcoin miners stopped selling their mining rewards last week, in order to accumulate.
The miner’s net position change (MNP) data shows that the difference between their rewards and their sales turned positive for the first time since December 27.
This means that the amount of BTC sold is less than the amount added to the wallet owned by the miner. The MNP increased by the time BTC plunged to $ 44,000, this week’s low.
In fact, the period that took place on December 28 saw MNP positive for more than 3 weeks, and the leading cryptocurrency soared past a significant $ 20,000.
Miner stopped selling and started accumulating Bitcoin
February 26 is the first day since December 27 when the miner’s position change index turned positive. Miners sold their bitcoins for 2 months.
Institutions strongly involved in Bitcoin
In fact, the data reveals what the market may have known too well, that demand is currently at an all-time high.
Organizations like Grayscale and MicroStrategy continue to hoard BTC and other cryptocurrencies with intense demand. Just on February 26, the crypto fund management company bought another 53,000 ETH in a single day.
Indeed, their total crypto assets under management (AUM) now exceed $ 36.6 billion. Furthermore, they recently revealed plans to add fund services, including a number of other cryptocurrencies.
MicroStrategy is not the only entity interested in crypto. Business analytics firm Grayscale is taking the spotlight with its regular Bitcoin purchases, where the last purchase involved $ 10 million.
Additionally, the company raised another $ 1 billion after the debt issuance, using these funds to buy an additional 20,000 BTC.
All signals are bullish
Accordingly, this large amount of buying is causing a significant shortage of supply. Combined, both Grayscale and MicroStrategy is aiming to own more than 10% of the total Bitcoin supply.
According to data from Chainalysis, this is if you lose almost 20% of all Bitcoin lost. You do not need a PhD in econometrics to estimate the impact of these data on the market.
If supply is less than demand, the price increases. And for now, all the signs on both the demand and the supply side suggest that will continue to happen.