According to data from on-chain analytics provider Glassnode, Bitcoin miners are hodling the digital asset and refusing to sell while long-term investors take profit.
Glassnode reports that while January was characterized by heavy selling from miners, the rate of selling has dropped significantly in February.
Miners and longer-term investors are the primary sellers of Bitcoin during bull markets. But since miners are refusing to sell, the only logical conclusion is that longer-term investors are responsible for a large percentage of the coins being sold.
Declining miner outflows is not a bad thing in this case. Glassnode considers it a bullish sign. The firm wrote:
This suggests that miners have either completed adequate sales to cover costs, or could also mean they see Tesla's vote of confidence as fair reason to keep a strong grip on their treasuries.
A look at Bitcoin’s Average Spent Output Lifespan (ASOL) reveals that long-term investors jumped on Tesla’s announcement of a $1.5 billion Bitcoin buy to realize profits.
But despite the profit-taking from longer-term investors, Bitcoin has continued to record gains. As of press time, the digital asset was trading at $48,500 after attempting to break the $50,000 benchmark severally.