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On-chain data shows that Bitcoin miners have been selling for about a year now. Here’s how much they’ve sold so far.
Bitcoin miners have given up more than 4% of their holdings in the past year
As CryptoQuant community analyst Maartunn noted in a new report mail On X, BTC miners were in net selling mode for a long period of time. The relevant on-chain metric here is “Miner Reserve,” which tracks the total amount of coins that miners as a whole hold in their wallets at the moment.
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When the value of this indicator rises, it means that the chain’s validators are adding a net number of tokens to their pooled holdings. Such a trend could be a sign that this group is accumulating, which could naturally be bullish for the asset price.
On the other hand, a decline metric indicates that miners are withdrawing coins from their addresses. The main reason why this group makes such transactions is for selling purposes, so this type of trend could have a bearish impact on Bitcoin.
Now, here’s a chart showing the trend in Bitcoin mining reserves over the past year:
As shown in the chart above, Bitcoin mining reserve has seen a steady downward trend during this window. There were some short periods of divergence, but the overall trend remained to the downside.
Historically, miners have existed as constant sellers on the network. The reason behind this is the fact that these chain validators have fixed operating costs in the form of electricity bills, which they pay by selling their BTC rewards for fiat currencies.
In general, despite being regular sellers, miners do not pose much of a threat to the price, as their sales tend to be on a scale that can be easily absorbed by the market. However, times when they engage in significant sell-offs can be wary of.
During the beginning of this year, Bitcoin miners held a total of 1.99 million Bitcoins in their reserves. Today, the same measure stands at 1.90 million BTC, meaning that miners sold 90,000 BTC (about $9.3 billion at the current exchange rate) or 4.74% of their holdings.
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This is a notable amount in itself, but when you consider that this sale took place over some time and not within a narrow window, the sale is no longer very interesting.
“Miners are unloading their cargo steadily, but not in large quantities,” the analyst notes. “This suggests they are likely to sell to cover operating costs.” As such, Bitcoin will likely not feel any significant downside effects from the sell-off by mining companies.
However, miners’ reserves can still be monitored in the near future, as any sharp changes in the metric could lead to a new result for Bitcoin.
Bitcoin price
Bitcoin hit a new all-time high above the $106,000 mark earlier today, but the coin appears to have seen a pullback since then as it now trades at around $104,000.
Featured image by Dall-E, IntoTheBlock.com, chart from TradingView.com
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