- BTC short-term holders have started selling their holdings for profit.
- Miners on the Bitcoin network continued to hold onto their coins
As Bitcoin [BTC] continued to consolidate within a narrow price range, an analysis of the leading coin’s exchange activity showed a rise in inflows from short-term holders.
This suggested that BTC holders who have held for less than six months have begun cashing in on recent gains, contributing to the current price stagnation at $35,000.
In a recent report, pseudonymous CryptoQuant analyst Crazzyblockk noted:
“The selling pressure from these categories may be the primary reason for the recent price volatility and the decrease in Bitcoin’s price.”
The whales, on the other hand, have adopted a different approach. Notorious for their resilience through different price cycles, the recent price rally has been no different.
As per AMBCrypto’s data obtained from CryptoQuant, BTC’s Exchange Whale Ratio (EWR) observed on a seven-day moving average has trended downward since 5 October.
This metric measures the proportion of BTC inflows to exchanges that originate from whale addresses. When an asset’s EWR climbs, it suggests that its whale addresses are sending a significant number of tokens to exchanges, which could be a sign that they are selling their holdings.
Conversely, when an asset EWR declines, it suggests whales are not sending many tokens to exchanges.
At 0.0.383, BTC’s EWR has dropped by 2% in the last month, according to CryptoQuant.
How the miners reacted to the recent rally
Although BTC exchanged hands at its highest price point in the last year at press time, miners on the network have continued to hold onto their coins. A look at the coin’s Miner to Exchange Flow metric on a 30-day small moving average confirmed this.
This metric measures the amount of BTC that is flowing from miners to exchanges. When this metric rallies, it means that miners are selling more BTC than they are mining.
On the other hand, when it declines, it shows that miners on the network are sending fewer coins to exchanges in anticipation of further price growth.
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At press time, the value of this metric was 443.32, having declined by 27% since the beginning of October.
Moreover, within the same period, BTC’s Miner Reserve – which measures the number of coins held in affiliated miners’ wallets – has witnessed an increase. This showed that despite the recent price rally, miners have held on to their coins instead of selling to book profits.