Miner outflows of bitcoin have dropped to decade lows, with analysts suggesting a hoarding mentality is partly responsible.
The seven-day average of the total amount of transferred out of miners’ addresses declined to 987 on Thursday, hitting the lowest level since Feb. 3, 2010, according to data source . The previous decade low of 988 was registered on May 23.
The number of coins being sent by miners to exchanges is also at its lowest point in over a year, Glassnode in its weekly report.
“It is a sign of efficient miners continuing to hoard (only selling a proportion of BTC),” said Asim Ahmad, co-chief investment officer at London-based Eterna Capital.
The increase in miner holding does not necessarily have long-term bullish implications for the cryptocurrency’s price. Miners tend to operate mainly on cash and liquidate their holdings almost on a daily basis to fund operations.
As such, miner hoarding could be termed as temporary deferral of BTC sales, possibly due to fears that the market lacks the strength to absorb the regular amount of supply. Essentially, they may be waiting for the market to show strength and prices to rise before realizing their profits.