On-chain data shows that Bitcoin miners withdrew a large amount of coins from their wallets yesterday. That suggests they may be planning to sell them.
Bitcoin miners transfer 14k BTC from the reserve
As one analyst said in a CryptoQuant post, BTC miner reserve has decreased in the past day.
“Miner Reserve” is an indicator that measures the total amount of Bitcoin stored in the wallets of all miners.
If the value of this metric increases, it means that more coins are currently entering the miners’ wallets.
Such a trend, if continued, could indicate that these chain validators are currently piling up. This can have a positive impact on the crypto price.
On the other hand, a reduced reserve value indicates that miners are currently taking net amount of BTC.
Since they usually transfer their coins to exchanges to sell, this type of trend can be detrimental to the value of BTC.
Here is a chart showing the evolution of the bitcoin miner reserve over the past few years:
As you can see in the chart above, bitcoin miner reserve has decreased significantly in the last few days.
The chart also includes the data for two other indicators: BTC Miner Position Index and BTC Miner Outflow.
Outflows are the total amount of coins that flow out of the miners wallet. As expected due to the reduction in reserves, this key figure has also lost a lot of value.
The Miners Position Index (MPI) similarly compares this current outflow value to the 365-day moving average.
This gives some insight into how current mine sales compare to sales observed over the past year.
The indicator showed a big swing yesterday. In the last two cases where such large spikes were seen, the price of bitcoin started to fall some time later (or just in the case of the April spike).
If the trend so far is correct, it could prove harmful to the value of the cryptocurrency.
How is BTC price behaving?
As of this writing, bitcoin is hovering around $21.5k, up almost 5% in the last 24 hours. Over the past week, the cryptocurrency has gained 0.3% in value.
Text credit: Bitcoinist
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