The on-chain data indicates that while Bitcoin prices have struggled recently, miners show diamond hands.
Bitcoin Miner Reserve Remains Alive Despite 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.
This indicator is used to indicate that miners are reducing their supply. As miners usually take coins out of their reserves to sell them on exchanges, this could be an indication that they are selling down. The coin’s price can also be affected by this trend.
A prolonged uptrend can be positive for Bitcoin’s value, as it could indicate that miners are investing at the moment.
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Here’s a chart showing the trends in Bitcoin miner reserve over the last couple years.
The value of the metrics seems to be trending down in recent months. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Bitcoin miner reserve was very high before the beginning of the 2021 bull market, however, many miners began to harvest profits as soon as the run started.
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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In times of low profitability, active miners must make a profit by selling their coins.
As a result of a rally, these holders began to accumulate again in July. This time, however, they didn’t sell off when the ATH was hit and a crash occurred.
However, the miners have not added to their Bitcoin reserve in any of these months. Despite the apparent inexorable sideways movements of crypto’s price, miners have remained strong.
BTC price
At the time of writing, Bitcoin’s price floats around $38.4k, down 1% in the past week. The crypto’s value has fallen 17% over the past month.
Below is a chart showing the change in coin price over the past five days.
Cryptocurrency seems to be losing value over the past few days. Source: TradingView, BTCUSD.| Source: BTCUSD on TradingView
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts