Bitcoin (BTC) miners are setting up a bullish trend despite large sell-offs around the halving, a new data metric suggests.
According to Glassnode’s Miner Outflow Multiple (MOM), outflows from mining pools compared to their one-year moving average are nearing all-time lows.
Demeester “bullish” on BTC miner data
MOM calculates coins leaving mining pools and compares them to the yearly moving average as a ratio.
As of June 3, that ratio was 0.534 — less than half its value one day before the halving on May 10.
By comparison, December 2018 saw mass upheaval due to BTC/USD hitting $3,100. This produced a ratio of around 0.28.
Reacting to the latest reading, Adamant Capital founder Tuur Demeester argued that Bitcoin investors have every reason to be optimistic.
He tweeted on Friday:
“Healthy bitcoin miners are hodling, and struggling miners have little BTC left to sell. Bullish.”
Bitcoin miner outflow multiple historical chart. Source: Glassnode
Bitcoin channels 2018 bear market bottom
As Cointelegraph reported this week, miner outflows have markedly decreased in the past two weeks. After the halving, there was a brief period in which sales totaled more than miners’ incomes.
Bitcoin’s mining difficulty, which automatically regulates the incentive to participate in the Bitcoin network, is currently on course to repeat another trait from December 2018 — three back-to-back downward adjustments in a row.
Such a phenomenon has only happened twice before, the other occasion being a record eight consecutive drops in 2011.