Analyst predicted growth in Bitcoin sales by miners

Miners may soon start selling bitcoins to fix profits. This was stated by analyst Philip Swift.

1 / Do miners still have the power to dump the price of $ BTC in a world where daily mined bitcoin is likely a lot smaller than institutional buying? Discuss.

The Puell Multiple, which looks at miner rev today vs. historical norms is approaching the overbought red band… pic.twitter.com/ZZAY9R9tdO

– Philip Swift (@PositiveCrypto) March 11, 2021

In its forecast, the expert refers to the Puell Multiple indicator , created by market analyst David Puell. The indicator is calculated as the ratio of the dollar value of the newly mined bitcoins to the average values ​​for the year and reflects the most profitable periods for the sale of the first cryptocurrency.

According to Swift, historically, the indicator’s achievement of the red zone coincides in time with the price highs of bitcoin. Now the indicator is at the highest level since the end of 2017.

“Puell Multiple, which reflects current miners’ earnings relative to the historical norm, is approaching the overbought level,” the expert wrote.

Institutional investors who entered the market during the bullish rally of 2021 can potentially absorb the new supply.

“Will miners be able to bring down the price of bitcoin if the number of coins mined per day is likely significantly lower than institutional acquisitions?” Swift asks.

In a comment under his tweet, analyst Cole Garner recalled that in the last two cases, sales of the first cryptocurrency by miners coincided with pullbacks in its price.

Can miners still dump price? I’ll just leave this chart here. pic.twitter.com/nIo0OK0gHN

– Cole Garner (@ColeGarnerXBT) March 11, 2021

“From the graph, miners are either very successful at bringing down the price of bitcoin, or they know exactly when to sell the coins,” Garner added.

In general, the desire to miners sell now is much lower than in previous years, the report says the company Stack Funds, which refers Cointelegraph.

According to them, the seven-day rate of outflow of funds from mining pools is at the lowest level since 2016. Then miner sales fell below long-term support, and 2017 was marked by an explosive rise in the price of bitcoin to $ 20,000.

Data: Stack Funds.

“Over the past year, the drop happened twice: in May 2020 and at the end of January 2021. This further confirms that the sale of bitcoins by miners is likely to remain low, which could be a catalyst for the growth of the asset’s value, ”believes in Stack Funds.

Based on fundamental indicators, the company’s analysts concluded that miners are accumulating bitcoins again, and the $ 50,000 level will be reliable support in the short term.

Recall that in November 2020, the Coin Metrics team developed a new methodology for quantifying the assets held by bitcoin miners. Its peculiarity lies in the separation of the activity of miners and mining pools, which makes it possible to more accurately estimate the reserves of mined coins at their disposal.

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