Bitcoin has recently risen from $ 3,800 to $ 7,000 in 13 days to yesterday, March 25th, according to the CoinDesk index .
In spite of the recent rise of bitcoin and the beginning of its recovery from the sharp decline witnessed by it, like the rest of the global markets in the past weeks.
However, bitcoin mining workers sell more than they produce, according to Trader Mining Stock Numbers (MRI), a measure created by the ByteTree data tracking company to track changes in the stock levels held by miners.
For 21 days, the MRI has been above the figure of 100 throughout the last bitcoin recovery period from its lows of $ 4,000.
(MRI) above the number 100 means that miners sell more than they mining and that their inventory is declining, while a reading below the number 100 indicates that miners collect bitcoin and store it by selling less than they mining.
Mining pools represent the highest percentage of Bitcoin flow to trading platforms and have a significant impact on prices.
However, some see the market reaction as a positive indicator.
As pointed out by Mr. "Connor Obindhan" analyst Alkrebto Research in Digital Assets Data including the following:
When bitcoin price rises sharply from the lowest levels, buyers can absorb the additional bitcoin sold by miners with little impact, this is an indication of the strength in the market in general.
The miners also stored bitcoin last Wednesday, as noted by Mr. Charlie Morris, founder of ByteTree and Chairman of the Board, who stated the following:
Mining miners sold 2,888 Bitcoin units for 1,588 what they mined, which led to the market meltdown, but the market took over currencies, which is bullish.
Bitcoin fell from $ 6,700 to $ 6,500 during the Asian session, perhaps after the miners sold what we returned, but reversed losses later in the day.
While other analysts see that the one-day differences in net sales of miners are often so small that they cannot make a correct judgment on the market upside.
Alexander Blum, Chief Operating Officer, Financial Technology Company “Two Prime” stated:
Compared to the amount of bitcoin in the world, sales of miners were less than 1%.
Wednesday's sale price of 2788 bitcoin was not statistically significant enough to have much meaning in major bitcoin price movements.
Since the two metals on average sold more bitcoins during the price rebound, this could be an indication of the underlying market strength.
However, Bitcoin remains vulnerable to fluctuations and risks higher than traditional markets.
Global stocks have regained some balance over the past two days, mainly due to the massive fiscal and monetary stimulus unveiled by the United States of America.
Corona's outbreak, by contrast, shows no signs of slowing down, and markets have yet to get a real sense of economic damage, which may be much greater than widely expected.
For example, initial jobless claims in the United States rose to more than three million in the week ending March 21, twice the economists ’forecast for 1.5 million new claims.
Peter Schiff, famous for his investment in gold and skeptical of digital currencies, tweeted early on Thursday, that:
If you think that what is happening now is an economic crisis, you are wrong, this is the health crisis.
The economic crisis is the one that follows the health crisis, and it will result from financial and monetary treatment.
The crisis will not only be worse than the Great Recession, but will represent a Great Depression.
Chris Thomas, Head of Digital Assets at Swissquote, said:
We must remain cautious about another liquidity crisis.