As the asset with the largest market cap in crypto, $BTC ’s trends and performance are often correlated with the performance of the rest of the market. Monitoring metrics on Bitcoin miners and holder balances can provide important signals about the direction of the entire crypto ecosystem.
Tracking long-term holder (hodler) balances has been a strong indicator of local price tops and bottoms. In each market cycle, there has been a clear accumulation of hodlers until near the local price peak, where hodlers begin to sell in large volumes to capture gains. Miners are another important category of Bitcoin holders to watch. As they seek to cover the costs of their operations, miners often sell in large volumes when prices rise.
Source: https://app.intotheblock.com/perspectives
