Bitcoin Miner Reserve Shoots Up; Trend Of Accumulation From Last Year Continues
As pointed out by an analyst in a CryptoQuant , the BTC miner reserve has shown strong uptrend recently. This seems to be a continuation of the accumulation trend from the last year.The “miner reserve” is an indicator that tells us the total amount of Bitcoin currently stored in the wallets of miners.
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Looks like the value of the indicator has showed sharp uptrend recently | Source:As you can see in the above graph, the miner reserve has been gradually moving up since May. A few days back, when the price of Bitcoin dropped down to $39k, the metric showed a huge spike up as miners bought the dip.
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Miners have traditionally been big sellers in the market as they have had to sell some of what they mine to keep their operations running. However, as BTC’s price has risen, and their machines have gotten more advanced and efficient, miners have started selling lesser as it’s enough to sustain electricity and other mining costs.Miners, who have originally always brought selling pressure to the market, have been shifting towards becoming hodlers for a coupe of years now. This can be quite bullish for the price of the coin in the long term.
BTC Price
At the time of writing, Bitcoin’s price floats around $42k, down 0.6% in the last seven days. Over the past month, the crypto has lost 10% in value.
The below chart shows the trend in the price of BTC over the last few days.BTC's price plunges down after breaking above $44k | Source:BTC managed to reach as high as $44.4k in its recent move up, but today the crypto has once again come back down, erasing the gains of the past couple of days.
Featured image from Unsplash.com, charts from TraadingView.com, CryptoQuant.com