Bitcoin Price Continues Struggle, But Miners Refuse To Sell
On-chain data shows while the price of Bitcoin has continued to struggle recently, miners have shown diamond hands.
Bitcoin Miner Reserve Holds Still Amid The Recent Price Consolidation
As pointed out by an analyst in a CrypoQuant post, BTC miners have been accumulating for some time now, and the dwindling price hasn’t scared them.
The “Bitcoin miner reserve” is an indicator that measures the total amount of coins present in wallets of all miners.
When the value of this indicator observes a decrease, it means the supply held by miners is going down. Such a trend may be a sign that miners are dumping right now as they usually withdraw coins from their reserve for selling them on an exchange. And therefore, this can be bearish for the price of the coin.
On the other hand, an uptrend in the indicator, when prolonged, can prove to be bullish for the value of Bitcoin as it may show miners are accumulating at the moment.
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Now, here is a chart that shows the trend in the Bitcoin miner reserve over the past couple of years:
Looks like the value of the metric has been trending sideways in recent months | Source: CryptoQuant
As you can see in the above graph, the Bitcoin miner reserve was at a very high value before the start of the 2021 bull run, but as soon as it kicked off a lot of miners harvested profits.
Following the crash in May of the same year, miners held on for a while, but it wasn’t too long until they the metric saw a plunge as they dumped.
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Active miners have running costs like electricity so in times of low profitability, they have to sell their coins to pay off these bills.
These holders started accumulating again in July as a new rally kicked off. This time, however, they didn’t sell off when the ATH was hit and a crash occurred.
Though, miners have also not been adding further to their Bitcoin reserves in recent months either. But nonetheless, they have held strong through the seemingly endless sideways movement the price of the crypto has shown lately.
At the time of writing, Bitcoin’s price floats around $38.4k, down 1% in the past week. Over the last month, the crypto has lost 17% in value.
The below chart shows the trend in the price of the coin over the last 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