On-chain data shows that bitcoin miners engaged in liquidation over the past day as they downloaded 3,000 btc from their wallets.
bitcoin miners sold $131 million worth of assets over the past day
As analyst Ali noted in a new mail On X, the btc mining reserve plummeted over the last day. The “mining reserve” here refers to the total amount of bitcoin that miners as a whole are carrying in their wallets at the moment.
When the value of this metric decreases, it means that miners are taking a net amount of coins out of their wallets. Generally, the main reason these chain validators would withdraw from their reserve is for selling purposes, so this type of trend can have bearish implications for the price.
On the other hand, the rising indicator suggests that miners are currently adding money to their wallets. This accumulation of this cohort can naturally have a positive impact on the cryptocurrency.
Now, here is a chart showing the trend in the bitcoin mining pool over the last month:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/132-million-in-BTC-downloaded.png" alt="bitcoin Miners Reserve ” width=”893″ height=”455″/>
The value of the metric appears to have rapidly gone down recently | Source: @ali_charts on X
As shown in the chart above, the bitcoin mining pool had been moving in a slight overall downward trend over the past month, but the decline has been much faster over the past day.
Miners have withdrawn a total of 3,000 btc from their wallets during this sharp drop, worth over $131 million at the cryptocurrency's current exchange rate.
It is not clear whether these departures from the mining reserve were made for sale. Still, given that they occurred after the asset recorded a strong rally, it seems possible that some of these chain validators decided to cash in on the high profits.
Miners have constant running costs in electricity bills, which they pay by selling some of the coins they have earned in block rewards and transaction fees. As such, it is not unusual to see this group participating in regular sales events.
These liquidations are usually easily absorbed by the market and cause little to no price fluctuations. However, the scale of the selling event this time is still quite extraordinary, so bitcoin could feel some bearish impact.
Glassnode's leading on-chain analyst Checkmate has shared an interesting fact about miners on an mail. It would seem that miners have been in perfect balance throughout the history of cryptocurrency.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/132-million-in-BTC-downloaded.jpeg" alt="bitcoin miner balance ” width=”1495″ height=”861″/>
The miner profitable vs unprofitable days | Source: @_Checkmatey_ on X
“Our framework for estimating production cost found that miners are profitable about 50% of the time!” explains the leader of Glassnode.
btc Price
At the time of writing, bitcoin is trading at around $43,500, up 14% over the past week.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/132-million-in-BTC-downloaded" alt="bitcoin price chart” width=”1534″ height=”869″/>
Looks like the value of the asset has seen some pullback since its recent high | Source: BTCUSD on TradingView
Featured image by Brian Wangenheim on Unsplash.com, TradingView.com charts, Glassnode.com
