The bears could hibernate for a long time, before the bulls finally decide to give them lasting control of the markets. Institutional investors are behind the bullish rally in Bitcoin (BTC) that began in October 2020. Miners seem to be playing the game of the bulls: they bury their Bitcoins at the risk of missing out on great sales opportunities.
The faith of minors
Institutional investors are certainly in the driver’s seat of the current rally of Bitcoin but, they are not the only ones to applaud for the new ATH of the BTC. Minors also have their say.
Since November 2020, outgoing flows of minors from Bitcoin fell 68%; more and more minors choose to keep their Bitcoins rather than selling them, despite the explosion in the price of BTC.
Miners take the risk of worshiping their Bitcoins, while perhaps waiting for a higher profitability, despite the possibility of a major decline – Michael van de Poppe continues to keep an eye on the $ 19,500 although Bitcoin reached a new ATH above $ 28,000 on December 27, 2020.
We are storing, the sale is for later!
The miners kept their Bitcoins during most of September and October 2020.
Data from Glassnode show an increase in withdrawals from Bitcoin exchanges to be stored over the long term in custodial wallets.
According to data from Cryptoquant, the Total miner outflow (TMO) is lower than in 2017 and early 2018.
The outflows recorded during these periods are significantly higher and have fallen considerably over 12 months.
The current rally has not yet been accompanied by an increase in TMO unlike that of 2019.
The bulls currently appear to be on their way to $ 30,000.
Miners are therefore believed to play a major role in the current BTC price explosion. But if they did start selling, wouldn’t institutional investors be happy to buy the dips? How far will the current rally go? What will eventually make the bulls run out of steam? Will successive parabolic increases end up causing major fears in the markets? At the moment, institutions and miners are giving every reason to be happy about a Bitcoin that easily earns more than $ 1,000 in a single day.
Litecoin, welcome in the Silver Age