CryptoQuant: mining metrics matter to investors

According to CryptoQuant researchers, the behavior of BTC miners is important to crypto investors. Several metrics can help assess the current situation and make predictions about the market. 

The first basic indicator is Miners Position Index (MPI). This indicator can determine if the outflow of miners at the moment exceeds the annual average value. According to CryptoQuant experts’ statistics, the amount of BTC changed significantly amid sharp fluctuations in value. 

Another important indicator was the number of transactions, reflecting the number of coins transferred by miners to exchanges. Here one should pay attention not only to the volume of transfers but also to the frequency of these transactions. The sell-off is inherent in the capitulation of miners, which indicates a difficult situation in the industry. In addition, a strong influx of bitcoins into the market can lower the price of the coin. 

Investors are also advised to keep an eye on where miners send their mined bitcoins. In addition to exchanges, they transfer BTC to third-party wallets to store them long-term. If there is a bullish trend and the value rises, miners can start selling, but if the number of transactions to wallets is increasing, it is a clear sign of a bearish market.