Companies that mine the first cryptocurrency have been hoarding it since September last year. Most often, this behavior indicates that market participants are preparing for the value growth of the digital currency.
The number of Bitcoins in miners’ wallets has reached a two-year high, according to Glassnode. Now the wallets of the companies that mine the first cryptocurrency contain over 1.82 million BTC, the figure has been growing since September last year. During this time, it increased by 2%.
Investors and miners are set for growth, so they try to keep the Bitcoins that are mined at the current level of difficulty, explained Jahon Khabilov, CEO of Sigmapool. He added that the market as a whole shows positive sentiment for the medium and long term, although there are fears that local breakdowns will occur down the spiral.
“After the new generation of equipment is fully introduced and fully produced in factories in China, after the suspension of production in the spring of 2020, we expect the hash rate to double to 200 TH/s. Perhaps this will happen by the end of this year or by the beginning of the next one,” Khabilov predicted.
An increase in the hash rate means that Bitcoin mining will become more difficult, which means that the supply will decrease. If the demand grows or remains at the same level, this should lead to an increase in the price of the cryptocurrency. The expert stressed that an increase in the emission of stablecoins and the number of coins on exchanges also speaks of the future growth in the value of digital money.
“Investors are pumping up liquidity to buy bitcoin and other popular cryptocurrencies little by little in the hope of growing. This is a signal that they will rise in price in the medium term,” the specialist explained.
Maria Stankevich, EXMO Development Director, agreed with him. Miners do not sell BTC, most likely this indicates that they are waiting for the cryptocurrency price to rise, the expert said. According to her, companies are ready to bear the costs by saving coins to make money on the growth of their value later.
Earlier it became known that the number of wallets whose owners accumulate Bitcoin reserves for a long time increased to 500 thousand. A total of 2.6 million BTC are stored on these addresses, which is about 14% of the emission of cryptocurrency.
