After rebounding the price up to 80% since hitting the bottom, the bitcoin price is still bullish amid the ongoing crisis triggered by the outbreak of Coronavirus. While the demand for Bitcoin has been increased during the recovery of its price, the Bitcoin miners have increased the sale of bitcoin. The average sell made by miners has recently been surpassed the number of bitcoin they are mining.
According to the Miner’s Rolling Inventory(MRI) and index used by the crypto analytics firm ByteTree to keep track of the flow of bitcoin from the miners, it suggests that the miners are selling bitcoin more than they are mining. The observation of the flow of bitcoin in the market over the last 21 days reveals that the number of bitcoin enter the market outrun the number of bitcoin generated by the miners. The index has stayed above 100 during this period of 21 days. While an MRI of 100 shows that the generation of bitcoin and sell are balanced, while MRI above 100 unveil that miners are selling more bitcoin in comparison to the number of bitcoin they mine. At the same time, an MRI less than 100 indicates the miners are stocking the mined bitcoin rather than selling them in the market.
Although the market pools have recorded the highest number of bitcoin coming into the market, they do not have any considerable impact on its price. Despite the changes in the pattern of supply and demand, the bitcoin price is always subject to volatility and impacted by numerous reasons. During this global epidemic, the equity markets are going through a difficult time despite a package of billions of US dollars released to uplift the current situation. The current situation does not indicate the quick recovery of the crashed market, but if the situation worsens further, we may see a new bottom of Bitcoin price.