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Bitcoin On-Chain Data Points to Miners and Old-hands Holding

Source: Glassnode

Bitcoin is on the rise after a volatile couple of days. Its on-chain activity also points to long-term holders increasingly unmoved by price fluctuations. According to Glassnode, the on-chain activity of the cryptocurrency reveals that old investors and miners are holding on to their BTC, while new investors were shaken out by the recent price correction.

The data also reveals that transfer volumes are testing new highs, leading to congestion on the network. The increased volume congestion on the network comes mainly from the sellers looking to book profits.

From the market charts, there has been a peak in transfer volumes to around $51 billion daily over the last 7-days. This is quite a jump, given that it is 25 percent higher than the volumes that Bitcoin recorded during the 2017 rally.

Source: Glassnode

Glassnode data also shows that over the past week, there has been a drop in the number of active addresses by about 10 percent. This is due to a surge in the average transaction fees that stood at $54.40 last week. However, the hash rate seems to have recovered, and the average Bitcoin transaction fees have dropped to around $17.

Source: Glassnode

It is also noteworthy that even now, as price recovers, miners are not selling their Bitcoin. They are now accumulating their Bitcoin, and the rate of accumulation is now testing the levels that it hit in 2018. This is an indicator that miners expect to get better prices in the future and make more in profits.

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