Crypto Miners’ Activities Highly Affect Market; Says Analyst
- CryptoQuant shared an insight into the crypto miners’ selling activity claiming that it affects the market.
- The blog reiterated that the market is affected by the miners’ activities as they hold a large number of assets.
- A warning is given that it is better to manage risks in the upcoming weeks to prevent the bearish tendency of the market.
CryptoQuant, the on-chain data analytics platform, shared an insight into the crypto miners’ selling behavior, a blog written by the crypto trader Shayan, also known as Greatest Trader. In the blog, the trader affirmed that the selling behavior of crypto miners “deeply affects markets.
Notably, CryptoQuant, embedding the link to Shayan’s blog, tweeted on March 9 that it’s better “to watch out and monitor the miner’s selling behavior”:
Better to watch-out and monitor the miner’s selling behavior!”This shows that the recent bullish spike in #Bitcoin’s price has provided a great chance for the miners to offload their assets, controlling their mining expenses.”by https://t.co/IRPH72lJx4… https://t.co/YSD4ZwH1CH
— CryptoQuant.com (@cryptoquant_com) March 9, 2023
Significantly, the blog reiterated that the crypto market is highly influenced by the miner’s activities as the miners hold a large number of assets. Also, it is stated that their activities and behavior also impact the market “in terms of traders’ sentiment.” To explain the content in detail, the blog incorporated a chart claiming that it demonstrates the miner reserve metric that measures the number of coins the miners hold in their wallets.
Miner Reserve Metric
Though many on-chain metrics presented bullish signs during the recent bullish period of the crypto industry, in the graph shown by CryptoQuant, the miner reserve metric has entered a bearish trend. Currently, it has reached new yearly lows, as per the graph.
Interestingly, the platform warned that “it is better to manage risks in the upcoming weeks” regarding the bullish trend in the market, stating:
This shows that the recent bullish spike in Bitcoin’s price has provided a great chance for the miners to offload their assets, controlling their mining expenses. This selling behavior might end up in a mid-term bearish sentiment in the market. As a result, it is better to manage risks in the upcoming weeks.
Further, the platform has provided the community with an opportunity to share their claims and comments regarding the possibilities of bullish and bearish crypto trends. At the time of reporting, the investors polled six votes for the bearish trend, while the bullish trend remained null with zero votes.
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