Bitcoin miners are stockpiling, with wallets associated with miners accounting for 14,000 BTC (Bitcoins) over the last six and half months, worth close to $600 million since February 2021.
According to a report by blockchain data and intelligence provider Glassnode, the net balance across exchanges continued to decline as inflows in May 2021 were absorbed by the market and moved to investor wallets.
The report observed that there has been an uptick in spending behaviour for coins older than six months during the month of August, which cooled off through September.
It said that the range of aggregate cost basis for Long-term Holder (LTH) spent coins since May is estimated to range from $18,000 to $31,000.
The report said that the prices reflected the bull market of 2020-21, suggesting that long-term investors in Bitcoin were becoming active traders or were using coin margined derivatives to hedge risk or an increase in speculation.
The pattern could also reflect uncertainty regarding current market structure as coins which are closer to the current price are spent preferentially.
The report also said that the hash rates continue to recover though less than a quarter of the peak network hash remain offline.
Hash rate is a measure of the computation power used per second to mine and process transactions on the blockchain.
Bitcoin’s hashing power had reportedly slumped 51% in late June, said Glassnode.
Bitcoin market cap was estimated to be $1.94 Trillion (at $103,000 BTC price) based on the topping model of 64x Thermocap.
Thermocap is a fundamental valuation model for Bitcoin representing the aggregate security spend to date, calculated as cumulative sum of all block rewards paid to miners, valued in US Dollars at the time of block production.