Institutional Investors And Miners Continue To Hodl Bitcoin
With leading digital assets, Bitcoin seeing gains of up to about $4,000 in a day, miners have continued to hold on to their mined assets. Making a case for the current scarcity of the digital asset, a new survey has shown that institutional investors are still amassing massive amounts of the digital asset.
One such proof was the recent withdrawal of Bitcoin worth about $800 million from the renowned crypto exchange, Coinbase. Miners have always seen rewards from mining Bitcoin after solving complex mathematical equations. They are often referred to as the network’s backbone as they are the only ones making the network secure.
Miners are no longer selling their Bitcoin
This recent behavior that the miners are exhibiting would tell on the price of the digital asset. Another action that they could carry out that will also affect the price of the digital asset is if they choose to sell their assets in bulk. A previous report across social media showed that the miners were holding on to their mined assets, but a report later projected that they have started selling them.
At the beginning of February, miners were in the news after making massive transfers of Bitcoin into their wallets. After the two transfers happened, Bitcoin lost $5,000 in the first period and lost about $13,000 when the second transfer took place. Since that events, miners have taken a different approach to how they deal with their mined digital assets.
According to the recent data published by CryptoQuant, the Bitcoin holdings of miners have now declined drastically, which has affected their Miners Position Index. Presently, the number of Bitcoin leaving miners wallets has now gone down to touch the 1-year moving average figure.
Tesla adds Bitcoin as a payment option
While miners have resolved not to sell their assets any longer and hold on to them, institutional investors have continued their savage attitude towards the market. A recent publication has shown that miners s have once again made a massive chunk of withdrawal from San Francisco-based crypto exchange company, Coinbase. The publication pointed out that miners have withdrawn a total of 14,666 Bitcoin from the exchange and have moved it to a permanent wallet. A look at the total digital asset’s worth is now roughly about $800 million.
The report took the price of the digital asset when the transfer was initiated into consideration. In a recent statement, CryptoQuant CEO has mentioned that miner’s and institutional investors’ actions have always had a good effect on the digital asset price. With the digital asset surging price again, analysts have attributed this surge to the recent Tesla news making the rounds.
The car-making company has officially added Bitcoin as their payment options, boosting the use cases of the digital asset. The CEO has always been a Bitcoin enthusiast and has previously bought a stake in the digital asset some months ago.