On-chain metrics indicate Bitcoin miners' influence on the price is diminishing

Research suggests that Bitcoin miners are holding less of the asset.

A new report by on-chain analytics provider CoinMetrics suggests that miners' considerable influence on the Bitcoin network is slowly diminishing.

The research analyzed miner and pool addresses and spending in order to determine whether their influence over the network as a whole had changed over time.

As miners receive newly issued Bitcoin rather than buy it, they are natural net sellers of the asset.

"On-chain metrics like miners' holdings and net transfer volumes indicate that miners' influence on the network is slowly waning."

The research found that the percentage of the supply held by miners has generally decreased over time.

When viewed in the context of total supply, the gradual reduction in supply held by miners and pools is even clearer.

Miners, especially those active in the network's early days, control a significant amount of BTC. But the number of coins held by miners has generally declined throughout the network's history.

Lower holdings means that miners have less BTC to dump on markets which diminishes their impact on prices.

Several other on-chain metrics have also been in decline recently such as hashrate, which has dropped due to seasonal changes in China where most of the mining is conducted.