According to Glassnode analysts, miners are holding a large portion of the Bitcoin mined after the price cleared the psychological barrier of $10,000. This behaviour is observed amid rising inflows of coins to centralized exchanges—the highest in three months.
#Bitcoin inflows into centralized exchanges have started to significantly increase.
We are currently seeing the largest hourly net flow spike (24h MA) in over three months.
Chart: https://t.co/mWByVkVUEA pic.twitter.com/MswxZZUeBL
— glassnode (@glassnode) July 27, 2020
The GNI index, reflecting the overall state of the Bitcoin blockchain, rose to 70 points. The metric includes three components:
- investor sentiment;
- network condition;
- liquidity.
The largest contribution to the index’s rise came from the improvement in the sentiment sub-index by 34 points as a result of increased BTC hodlers’ purchases. The improvement of the overall indicator was also influenced by the growth of the liquidity component due to coin inflows to exchanges and revival of on-chain activity.
GNI is in bullish territory for the ninth week in a row. Last week’s reading was among the highest this year.
With $BTC breaking $10k and on-chain fundamentals growing stronger, #Bitcoin hit one of its highest GNI scores this year — pushing deeper into the bullish regime.
Read more in the latest Week On-Chain 👇https://t.co/ftrbRbz1kE pic.twitter.com/SELOsY3Vks
— glassnode (@glassnode) July 27, 2020
Miners are not rushing to part with the mined coins, despite a sharp inflow of Bitcoin to centralized exchanges. Experts say this could signal confidence in further upside.
Volume of Bitcoin transfers by miners. Source: Glassnode
One of the reasons BTC rose to a new high since September 2019 was the mass liquidation of short positions in Bitcoin derivatives. The total volume of these liquidations surpassed $500 million.
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