- Short-term holders of BTC have started selling their holdings for profit.
- Miners on the Bitcoin network continued to hold on to their coins
Like Bitcoin [BTC] As consolidation continued to consolidate within a narrow price range, an analysis of the leading currency’s exchange activity showed an increase in inflows from short-term holders.
This suggested that BTC holders who have held their holdings for less than six months have started cashing in on recent gains, contributing to the current price stagnation at $35,000.
In a recent one reportnoted pseudonymous CryptoQuant analyst Crazzyblockk:
“The selling pressure from these categories may be the main reason for the recent price volatility and decline in Bitcoin’s price.”
The whales, on the other hand, have taken a different approach. Notorious for their resilience through various price cycles, the recent price rally has been no different.
According to AMBCrypto data obtained from CryptoQuant, BTC’s Exchange Whale Ratio (EWR), observed on a seven-day moving average, has been on a downward trend since October 5.
This metric measures the share of BTC inflows to exchanges originating from whale addresses. When an asset’s EWR rises, it suggests that whale addresses are sending a significant number of tokens to exchanges, which could be a sign that they are selling their assets.
Conversely, when an asset’s EWR decreases, it suggests that whales are not sending many tokens to exchanges.
According to CryptoQuant, BTC’s EWR has fallen 2% over the past month at 0.0.383.
Source: CryptoQuant
How the miners responded to the recent rally
Although BTC was exchanging hands at its highest price over the past year at the time of writing, miners on the network have continued to hold onto their coins. A look at the coin’s Miner to Exchange Flow metric on a small 30-day moving average confirmed this.
This metric measures the amount of BTC flowing from miners to exchanges. When this statistic increases, it means miners are selling more BTC than they are mining.
On the other hand, if it drops, it shows that miners on the network are sending fewer coins to exchanges in anticipation of further price growth.
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At the time of writing, the value of this statistic stood at 443.32, having dropped 27% since the beginning of October.
Source: CryptoQuant
Additionally, BTC’s Miner Reserve – which measures the number of coins held in the portfolios of member miners – has increased over the same period. This showed that despite the recent price increase, miners have been holding on to their coins rather than selling them to make a profit.
Source: CryptoQuant