On-chain data shows that early bitcoin miners have engaged in a lot of profit-taking within the asset's recent price range.
bitcoin miners have made huge profits between $62,000 and $70,000
As noted by CryptoQuant founder and CEO Ki Young Ju in a newx.com/ki_young_ju/status/1803140316536479878″ target=”_blank” rel=”noopener nofollow”> mail On x, the “first” btc miners made a huge amount of profits this year. Early miners here refer to bitcoin validators who entered during the initial adoption phase of the cryptocurrency.
Miners generally sell what they mine to pay their running costs, but some of them may choose to HODL. There are some early miners who haven't moved their block rewards in a long time.
These miners may also be HODLing, but a more likely explanation behind their inactivity could be that their wallets have simply been lost due to forgotten or misplaced keys.
However, it seems that some of these old miners have awakened once again, as they have been making some moves recently.
Below is a graph showing the trend in the “realized profits” of these early miners over the last decade:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/Former-Bitcoin-miners-made-550-million-in-profits-this-year.jpeg" alt="The first bitcoin miners” width=”4000″ height=”2250″/>
The value of the metric seems to have registered some spikes in recent months | Source: x.com/ki_young_ju/status/1803140316536479878/photo/1" target="_blank" rel="noopener nofollow">@ki_young_ju on x
In this case, the profit obtained is an indicator that measures the total amount of profit (in USD) that the first cryptocurrency miners are obtaining through their transactions.
The metric calculates this by subtracting the price at which these old entities last moved the coins, from the current spot price at which these investors are moving them again.
As you can see from the chart, the indicator's value has recorded some very large spikes this year, suggesting that early miners have decided to book some of their profits.
These large values of the indicator occurred when the price traded within the range of $62,000 to $70,000 and corresponded to a total profit-taking spree of a whopping $550 million.
From the chart, it is evident that this type of trend is not unusual for a bull market, as previous phases of the cryptocurrency had also seen early miners break their silence to make huge profits.
Another cohort of veterans also just engaged in a lot of profit-taking: the long-term incumbent whales. Long-term holders (LTH) refer to investors who have held their coins for more than 155 days, while whales are generally defined as holders with at least 1000 btc.
Therefore, LTH whales would be the largest HODLers on the market. As shown in the following chart shared by the founder of CryptoQuant on another x x.com/ki_young_ju/status/1803137868254343450″ target=”_blank” rel=”noopener nofollow”>mail As an example, the profits made for these investors have seen a large increase recently.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/1718831699_84_Former-Bitcoin-miners-made-550-million-in-profits-this-year.jpeg" alt="bitcoin LTH Whales” width=”4000″ height=”2250″/>
Looks like the value of the metric has been quite high recently | Source: x.com/ki_young_ju/status/1803137868254343450/photo/1" target="_blank" rel="noopener nofollow">@ki_young_ju on x
btc Price
At the time of writing, bitcoin is trading at around $65,000, down around 4% from last week.
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The price of the asset appears to have been going down recently | Source: BTCUSD on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
