BTC miners’ net position turns positive after a long time and a week of turbulent market volatility with the market seeing strong drops with BTC and its peers dropping about 25% from its recent highs as we can see in our latest bitcoin news today.
After a week of turbulent market volatility, the crypto market experienced a few drops with BTC and its peers dropping about 25% from the recent highs. The selloff caught plenty of the speculators and traders off-guard and caused panic reactions immediately. The crypto Fear and Greed Index changed from a weekly high of 94 to 55 but the analyst reiterated that minor corrections are both organic and necessary as BTC looks to consolidate around the hard support levels.
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For the first time since December, the BTC Miners’ net position changed and shifted to positive again. Some analysts saw this accumulation by the miners as a bullish indicator and cited that the selling pressure could subside eventually. Still, it’s not clear whether the decreased selling from the pools will have a noticeable impact on the BTC price because historically there’s little correlation between the price and the miner behavior. The research from Clain shows that there’s no proven statistical significance between the price action and the volume of Bitcoin that the miners sold up to 2019.
“The only sizable correlation that we were able to detect was a correlation between USD value of flows and the BTC price. The USD flow variable is a derivative of BTC price, so it factors in a huge deal of BTC price itself and thus shall not stand for a fair relationship. Dismissing that strong correlation, we are left with no interesting insight.”
It’s also possible that the positive net positions are a sign that the miners see the current price as undervalued and with more companies like MicroStrategy, Square, and Tesla adding BTC to their balance sheets, more growth prospects for the crypto space and the mainstream adoption is almost certain. Based on historical data and research, it will be a mistake to suggest that the accumulation by the miners will serve as a catalyst for another major rally in the near future.
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