Bitcoin Analysis: Week 17 - (Part 4 out of 7)
Miners are they selling?
Miners are one of the driving forces of the cryptocurrency market, assuming that miners are in general good sellers and have a significant impact on the market, it is important to understand their position. The Miners’ Position Index (MPI) shows the ratio of BTC leaving all miners wallets to its 1-year moving average. If the value is above 2, it indicates the selling pressure of miners. The current MPI is below 0, therefore negative indicating that miners are mainly holding on to their coins. However, it is a fallacy that miners are not selling at all, considering miners do have operational costs, and these need to be covered.
The narrative of miners not selling is being strengthened by the miner's outflow. This indicator shows the total amount of BTC transferred from all miners’ wallets. The miner's outflow has recently been very low, especially after March 2021in comparison with all of 2020.
