On-chain data emerges while Bitcoin price has continued to struggle lately, miners have shown diamond hands.
Bitcoin Miner Reserve Still Amidst Recent Price Consolidation
As pointed out by an analyst at CrypoQuant mailBitcoin miners have been piling up for quite some time now, and the falling price has not frightened them.
The “Bitcoin miner reserve“It is an indicator that measures the total amount of coins in the wallets of all miners.
When the value of this indicator notices a decrease, it means that the supply held by miners is declining. This trend may be a sign that miners are dumping coins at the moment because they usually withdraw coins from their reserves to sell on the exchange. Thus, this can be bearish in relation to the price of the coin.
On the other hand, the bullish trend in the index, when it continues for a long time, could prove bullish for the value of bitcoin as it may show that the miners are accumulating at the moment.
Now, here is a chart showing the trend in bitcoin miner reserves over the past two years:
Looks like the value of the metric has been trending sideways in recent months | Source: CryptoQuant
As you can see in the chart above, Bitcoin miner reserves were at a very high value before the start of the 2021 uptrend, but once it started a lot of miners reaped profits.
After the crash in May of the same year, the miners held out for a while, but it wasn’t long until the scale saw a plunge as they sank.
Active miners have operating costs like electricity, so in times of low profitability, they have to sell their coins to pay those bills.
Those carriers started piling up again in July as a new rally took off. This time, however, they didn’t sell out when ATH He was injured and had a crash.
Despite this, miners have also not added more to their bitcoin reserves in recent months either. But nevertheless, they have maintained their strength with the seemingly endless sideways movement that the cryptocurrency price has shown recently.
At the time of writing this report, Bitcoin price It is floating around $38.4K, down 1% in the last week. Over the past month, the cryptocurrency has lost 17% of its value.
The chart below shows the currency price trend over the past five days.
The value of the crypto seems to have slid down over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com