On-chain data shows that Bitcoin miners have been selling Bitcoin recently, but the quant analyst believes that this selling will not have much impact on the market.
Bitcoin miner reserves have seen a recent decline
In a CryptoQuant Quicktake post, an analyst discussed the latest selling pressure exerted on the market by miners. The metric of interest here is “Miner Reserves,” which tracks the total amount of Bitcoin currently held in miners’ wallets.
This metric naturally provides information about the collective behavior of validators on these chains. Generally speaking, miners withdraw coins from their reserves when they want to sell, so a drop in this metric could have negative consequences for the asset.
On the other hand, an increase in this indicator could be positive for the price of the cryptocurrency as it indicates that miners are currently in accumulation mode overall.
Now, here’s a chart showing the trend in Bitcoin miners’ reserves over the past year:
The value of the metric seems to have been heading down in recent days | Source: CryptoQuant
As shown in the chart above, Bitcoin miners’ reserves have been declining since October, meaning this group has withdrawn a net amount of BTC from wallets during this period.
The recent sell-off by miners has been a talking point in the community recently, with many speculating on the bearish impact it could have. However, the quant has a different take on the matter.
“As discussed on X and various portals, there is no basis for miners to dump their Bitcoin reserves,” the analyst explained. To support this claim, the quant pointed out the exact numbers involved here.
Before this sell-off began, miners’ reserves were worth approximately 1,84,997 BTC. With the metric declining since then, miners currently hold approximately 1,833,222 BTC.
This represents a decrease of 12,755 BTC, which while itself is large, is not too large overall, especially considering the size of the miner reserves themselves. “Bitcoin’s minimum sales would have a negligible impact on the market,” the analyst noted.
The trend in the miner inflows and outflows over the past couple of months | Source: CryptoQuant
The chart above shows data on Bitcoin inflows and outflows from miners. There has indeed been an outflow of funds recently, which is why there is talk of selling.
Meanwhile, inflow trading volumes are also at significant levels, compensating for these outflows. This is why the net decrease in total miner reserves has been relatively small.
bitcoin price
Bitcoin had earlier crossed the $43,000 mark, but the asset suffered a setback in the past day, falling back to $42,500.
Looks like the price of the coin has retraced some of its recent recovery | Source: BTCUSD on TradingView
Featured images from Shutterstock.com, charts from TradingView.com, CryptoQuant.com
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