Glassnode, one of the crypto space’s most prominent on-chain analytics providers, has recently published a new set of data. This data reveals that the Bitcoin miners are starting to hodl their various Bitcoin earnings, with the long-term investors opting to reap their hard-earned profits.
Miners Taking A Step Back
Miners had been heavily selling in January, but Glassnode’s latest report showed that they all seemingly decided to stop, with the miner outflows drying up almost completely for February.
In the ongoing bull market, the report claims that it’s the longer-term investors and the miners that are the two driving sellers within the ongoing bull market for Bitcoin. Glassnode declared that the miner outflows had seen a decline, which can be interpreted as bullish in one of two ways: Either these miners have already covered their costs with the Bitcoin they already sold, or the big Tesla investment into Bitcoin, a whopping $1.5 billion, has made everyone want to hodl like there’s no tomorrow.
Old Investors Cashing In
With the miners suffering a case of Hodl Flu, Glassnode had concluded that the biggest portion of coins being sold into the market comes from longer-term investors offloading their investments and reaping their rewards.
The report made a special mention to the “Elon Candle” event, having happened last week. This stands as the single largest daily candle for Bitcoin in its entire history, has happened one day after Tesla announced its Bitcoin investment. Within a single day, Bitcoin managed to be driven up by 18.5%, having done so on the 8th of February, 2020.
The Average Spent output Lifespan (ASOL) of Bitcoin stands as a measurement of the average age of all spent transaction outputs, measured in days. Glassnode highlighted that the ASOL for this bullish round stands at between 30 to 58 days, making it clear that it was the long-term investors that sold their holdings, capitalizing on Tesla’s extremely bullish announcement.
Selling Since October
Another key metric is the Coin Days Destroyed (CDD) measurement. This stands as a measurement of economic activity that gives coins more weight the longer they haven’t been spent, while also showing redistribution of old coins. With this information in tow, the Glassnode report has concluded that the long-term investors have started to reap their profits ever since October of 2020. This was when Bitcoin managed to push past the $12,000 mark.
It’s terrifying and amazing to know that Bitcoin is now worth over three times that amount.