Bitcoin, the world’s largest crypto asset, is down more than 20% in the last 7 days after heavy selling pressure pushed the price of BTC below $44,000 on Sunday. Bitcoin miners have reduced their BTC selling as their net position turned positive for the first time in 2021.
According to the data published by the on-chain market analysis platform, Glassnode, Bitcoin miners’ net position change reverted to positive on Friday for the first time since 27 December 2020, indicating that BTC miners are planning to hold the world’s largest cryptocurrency.
Since the start of 2021, Bitcoin miners have sold BTC in large amounts due to a surge in the price of the digital asset. Data from Glassnode indicates that BTC miners dumped their holdings significantly during the last week of January 2021.
Bitcoin registered an all-time high of $58,000 in February amid growing interest from institutions. Tesla announced its $1.5 billion investment in BTC, and MicroStrategy purchased $1 billion worth of Bitcoin within the last month. BTC price saw a crash during the last week of February amid huge selling pressure from retail clients and a surge in anonymous BTC transactions.
China’s Bitcoin Mining Dominance
China is a dominant force in cryptocurrency mining. The miners based in the country account for more than 50% of the global hash rate. Despite some regulatory and energy-related challenges, the Bitcoin mining business is flourishing in the country. The recent data shows that the Chinese Bitcoin miners have decided to accumulate BTC instead of selling during the price crash.
Bloqport, the crypto analytics and research platform mentioned on Twitter that the latest positive change in Bitcoin miners’ net position shows that the selling intensity of BTC miners is decreasing slowly and steadily.
The crypto market lost more than $300 billion in the last 7 days after a massive drop in BTC and Ethereum. As of writing, the overall market cap of digital assets stands at around $1.4 trillion.