Investing 101

Value is driven by the intersection of supply and demand - here are some factors to help you understand where the “value” (and price) of a crypto currency could go next. 

Miner purchases are the sum USD value of all non-fee transfers received by all mining entities from crypto exchanges during a specific interval. High purchases showcase high demand for crypto, and imply potential bullish price action. On the other hand, low purchases showcase low demand, and imply potential bearish price action.

On the supply side, miner sales can be used as a proxy for the primary supply of a mineable coin. High miner sales correlate with high supply, which shows ease of mining, and hence point to potential bearish price action. Low sales correspond to low supply, showing the difficulty to mine, and hence point to potential bullish price action. 


Here are some factors to help you understand where the “value” of a crypto currency could go next. 

Miner Purchases and Sales

Crypto Indicators

The unique feature of the Bitcoin network is a distributed public ledger that records all ownership and transactions of Bitcoin. As transactions take place,  the data is grouped into “blocks” and chronologically added to the network’s blockchain - an ongoing linear chain of data blocks. 

The blocks that make up the chain are intended to be structurally identical - each block contains a block header and the transaction data. Each new block contains cryptographically verifiable data regarding transactions, as well as a numerical challenge that must be solved in order for the current block to be approved and added to the blockchain.

A high block count shows healthy activity in the chain whereas a low block count shows limited activity in the chain.

Blocks

Miner Purchases and Sales