Miners Boost Bitcoin Sales Despite Signs Of The Market Rally
Since the record drop recorded on March 11, Bitcoin has gradually stabilized and climbed out of the bottom. Until March 25, the price of Bitcoin rose from a critical low of $3,867 to $7,000. Now there is an unprecedented situation: miners during this time sold more coins than they created. This is visible thanks to moving inventory (MRI) data. This indicator was introduced specifically to monitor the volume of coin generation by miners.
Although the price of Bitcoin has risen above $4,000, the situation in the cryptocurrency market has not improved. For 21 days, the index of moving inventory was above 100. This suggests that miners sell more cryptocurrencies than they generated for a certain period. If the MRI is lower, it means that the issue of new coins by miners exceeds their sales.
In the current circumstances, interest in buying Bitcoin by new users has grown. New coins generated by miners are a factor in which Bitcoin price growth depends. Some analysts believe that the increase in coin sales by miners can be evaluated positively. In particular, Digital Assets Data crypto analyst Connor Abendschein noted the following:
“If there is a stream of buyers for Bitcoin that miners generated, this suggests that Bitcoin remains the largest leader in the cryptocurrency market and will not give up its position.”
Miners began selling the coins they held in stocks. This was told by ByteTree founder Charlie Morris on Twitter:
Now the price of cryptocurrencies can fluctuate dramatically in the range of one day. Some analysts attribute this to the massive sale of coins by miners. For example, at the beginning of the day, the rate could drop to $6,500, and by the end of the day, it could rise to $6,500.
Some analysts believe that the one-day changes in the cryptocurrency exchange rate cannot talk about the growth of bullish impulses. Alexander S. Blum, chief operating officer of Two Prime, commented on this situation:
“The level of coin sales by miners is not high enough to talk about a significant impact on the Bitcoin exchange rate. Miners sold no more than 1% of the total amount of Bitcoins that are in the world. ”
Cryptocurrency continues to be in a precarious position while traditional markets received external assistance from the government. In particular, the United States allocated an amount that exceeds $3 trillion to stimulate the economy.
Now it is difficult to assess all the negative consequences for the global economy associated with the spread of Coronavirus. Pandemic outbreaks span-new regions every day; companies are in financial collapse. In just 1 week in the US, 1.5 million people applied for unemployment benefits.
Analysts from different quarters of the world make disappointing forecasts. For example, Peter Schiff noted:
According to Chris Thomas, head of digital assets at Swissquote Bank, now “we must prevent a liquidity crisis.”