The index, which reflects the volume of Bitcoin sales by miners, has just hit a new high, according to data provided by analysis resource CryptoQuant. The company's analysts say this is the result of the miners' sales on exchanges and the OTC market.
The index reflects the proportion of Bitcoins leaving the miners' wallets in relation to the 1-year moving average. According to CryptoQuant, values above 2 indicate most miners are selling the coins they extract. The figure currently stands at 8.65. The last time it hit this level was in January 2018.
CryptoQuant CEO Ki Young Ju said:
"MPI was skyrocketed three times and made local tops in the 2017 bull-run. $BTC might have a pullback, but I think the price will go up eventually. I'm sticking with the long position for now."
Analysts have noted sellers usually sell their coins when Bitcoin hits new highs. However, it is believed miners sell when they are confident in the market's ability to absorb their supply without affecting the price of the crypto. This is due to the fact that miners are less interested in instant profits than other sellers, as they constantly need funds to finance their activities.
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