On-chain analytics provider Glassnode has published data revealing that Bitcoin miners are accumulating while long-term investors are making profits.
Although January saw heavy mining sales, the Glassnode report shows that mining outflows have dried up in February so far.
The report states that miners and long-term investors are the two main sellers of Bitcoin during bull markets. According to Glassnode, declining mining output flows can be inferred as optimistic, with miners already covering their operating costs or stockpiling coins in response to Tesla’s $ 1.5 billion Bitcoin investment:
“This suggests that miners have made adequate sales to cover costs or may also mean that they see Tesla’s vote of confidence as a fair reason to maintain strong control over their treasures.”
With miners now holding their BTC, Glassnode concludes that most coins sold in the markets are being unloaded by long-term investors.
The report points to ‘Elon Candle’ from last week – with the largest daily candle in BTC history being posted the day after Tesla’s investment was announced, generating a 24-hour price gain of $ 7,162 or 18.5% on Monday, February 8.
Looking at Bitcoin’s average exit time spent (ASOL), an indicator that measures the average age in days of all spent transaction exits, Glassnode concluded that long-term investors capitalized on Tesla’s news to make a profit.
“Elon Candle increased the average age of coins spent from 30 days to 58 days, as shown in ASOL.”
The company noted that Coin Days Destroyed (CDD), which is a measure of economic activity that gives more weight to coins that have not been spent for a long time, also shows that older coins are being redistributed. Glassnode concludes that long-term investors have been making profits since October – when BTC exceeded $ 12,000.
Tesla’s investment also generated record social signals for Bitcoin, with Twitter activity reaching new highs after the vehicle manufacturer’s investment was disclosed.
Despite profit taking, Bitcoin’s price continues to gain, with BTC testing its recent record high of approximately $ 49,600 on February 16.