On-chain data shows the Bitcoin MPI has spiked up recently, suggesting that miners may have started to dump the crypto.
Bitcoin Miners’ Position Index (MPI) Has Sharply Risen Recently
As pointed out by an analyst in a CryptoQuant post, some data suggests BTC miners may have began to dump the coin following recent rally.
The “Miners’ Position Index” (or the MPI in brief) is an indicator that measures the ratio of the Bitcoin miner outflows and the 365-day moving average of the same.
The “miner outflows” is a metric that tells us the total amount of coins that miners are transferring out of their wallets right now.
When the value of the MPI is high, it means miners are sending out more coins than usual. This trend can be bearish for the price of Bitcoin as it may be a sign of dumping.
On the other hand, the indicator’s value being low can be bullish for the coin’s price as it may imply that miners are selling lesser than usual at the moment.
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Now, here is a chart that shows the trend in the BTC MPI over the past year:
The indicator's value seems to have spiked up recently | Source: CryptoQuant
As you can see in the above graph, the Bitcoin MPI has shot up in value in recent weeks. This could mean that miners have ramped up selling recently.
The quant has also included other indicators in the chart, the first of which is the miner to exchange flow, which tells us how much of the miner outflows are going to centralized exchanges.
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Since this metric hasn’t spiked up, it could mean that miners are selling through OTC deals right now. Another indicator on the chart is the miner inflow, which measures the amount of coins moving into miner wallets.
Interestingly, this metric had a larger spike than the outflows, which implies that any selling some miners may have done should be more than made up for through the buying by other miners.
The whole picture would suggest that the current trend should have a rather neutral impact on the price of Bitcoin.
At the time of writing, Bitcoin’s price floats around $47.9k, up 12% in the last seven days. Over the past thirty days, the crypto has gained 27% in value.
The below chart shows the trend in the price of the coin over the last five days.
Looks like the price of Bitcoin has surged up over the past couple of days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com