Last week miners sold 2,900 BTC, but that did not stop Bitcoin rose above $50 000. On-chain metrics continued to indicate the predominance of ‘accumulation’ among traders and inflows of capital from institutional investors, according to the latest Glassnode report.
#Bitcoin reclaimed the $50k level this week, with on-chain data suggesting the dominance and stickiness of institutional capital continues to grow
This week we analyse on-chain volumes, derivatives and recent miner spending
Read more in The Week On-chainhttps://t.co/Z3mbjqwmXP
— glassnode (@glassnode) September 6, 2021
Bitcoin hash rate rose from July lows by 42%, to 128 EH/s (14-day moving average), but the metric remains 29% below its all-time high. Thanks to the drop in mining difficulty and rising prices, miners’ daily revenues returned to levels typical of July 2019, at 1 EH.
The sale of 2,900 BTC (~$145 million) was explained by analysts as necessary to cover operating costs and relocation expenses for industry participants from China, as well as to expand the fleet and upgrade ASIC devices.
As a result, miners’ net position returned to neutral, showing a balance between accumulation of coins and their distribution by this category of players. The market was able to absorb the sales and extend the positive momentum.
Summarising last week, Glassnode also pointed to a rising open interest (OI) in crypto derivatives.
If for Bitcoin perpetual contracts the OI ($11.8 bn) is still on path to the all-time high ($15 bn), then in similar instruments on Ethereum the OI record ($7.8 bn) has already been reached.
A worrying note for analysts was the relatively low funding rates on perpetual contracts. The current rate approached 0.03%, seen shortly before the May correction. In their view, the lack of upside momentum in the metric could pose a problem for continued gains if long liquidations.
Bloomberg strategist forecast Bitcoin to $100 000 and Ethereum to $5000.
In September, billionaire Bill Miller’s fund recognised the growth potential of Bitcoin’s market capitalisation to a level on a par with gold.
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