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.
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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