Bitcoin Miners Silently Piling Up As The Market Bleeds

Data on the chain suggests Bitcoin miners quietly rallied as the rest of the market bled.

Bitcoin Miner Reserve Continues to Stay High Despite Struggling Price

As explained by an analyst in a CryptoQuant afterBTC miners seem to continue to pile up as the price has fallen in recent weeks.

The “BTC Miner Reserve” is an indicator that tells us the total amount of Bitcoin present in the wallets of all miners.

When the value of this indicator rises, it means that miners are transferring a net amount of coins into their reserves. A long-lasting such trend could be a sign that miners are now piling up.

On the other hand, a downward trend in the statistic suggests that miners may be selling right now because they are taking some Bitcoin out of their wallets. This trend could be bearish for the price of the crypto.

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Here is a chart showing the trend in the BTC miner’s reserve over the past year:

It seems that the value of the indicator has recently been on an uptrend | Source: CryptoQuant

As you can see in the chart above, the miner’s reserve has been increasing since Bitcoin’s all-time high of $69k was set and the price then started to fall.

During this period, miners have added just under 12k BTC to their coffers, while the price of the cryptocurrency has fallen by about 35%.

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Historically, miners have always been one of the main sources of selling pressure in the market. So these traditional sellers who have been exhibiting rather accumulative behavior lately could be quite bullish for Bitcoin’s price.

The figure in the post believes that this trend of accumulation and not recent mass dumping could be a sign that crypto is beginning to hit lows.

While this may benefit the price in the long run, the short-term outcome is still quite uncertain due to the Russian invasion of Ukraine that is still ongoing.

BTC price

At the time of writing, Bitcoin price is hovering around $38.3k, down 1% over the past seven days. Over the past month, the cryptocurrency has fallen 8% in value.

The chart below shows the trend in the price of BTC over the past five days.

The price of BTC seems to have fallen in recent days | Source: BTCUSD on TradingView

Just a few days ago, Bitcoin had climbed above $45k again, but it didn’t last long. The price fell quite quickly and has now fallen to the current sub-39k levels.

Featured image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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