Bitcoin Miners’ Position Index Has Spiked Up During Past Day
As pointed out by an analyst in a CryptoQuant , this instance is the fifth time that the metric has sent a warning signal.The “Miners’ Position Index” (or the MPI in short) is an indicator that measures the ratio between the miner outflows in USD, and the 365-day moving average of the same.
Generally, miners transfer coins out of their wallets (that is, make outflow transactions) for selling purposes. Thus, the MPI can tell us whether miners are selling more or less right now compared to their past year average.
When the value of this metric is high, it means miners are dumping more than usual currently. On the other hand, low values suggest these chain validators aren’t doing any heavy selling at the moment. Now, here is a chart that shows the trend in the Bitcoin MPI over the past year and a half:The value of the metric seems to have been pretty high recently | Source:As you can see in the above graph, whenever the Bitcoin Miners’ Position Index has crossed above a value of 2 during the past year, the price of the crypto has seen a decline shortly after. There have been five such spikes in 2022 so far, the latest of which has only just been recorded in the last 24 hours.
BTC Price
At the time of writing, Bitcoin’s price floats around $16.9k, up 3% in the last week. Over the past month, the crypto has lost 17% in value.
Below is a chart that shows the trend in the price of the coin over the last five days.Looks like the price of the crypto has retreaded below the $17k level again | Source:Bitcoin has surged up in the last few days, but it’s unclear whether this rise will last, given the recent increased selling pressure from the miners.
Featured image from Hans-Jurgen Mager on Unsplash.com, charts from TradingView.com, CryptoQuant.com