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On-chain data shows that bitcoin miners have been selling for about a year. This is what they have sold so far.
bitcoin miners have lost more than 4% of their holdings in the past year
As noted by CryptoQuant community analyst Maartunn in a new <a target="_blank" href="https://x.com/JA_Maartun/status/1868278015727129015″ target=”_blank” rel=”nofollow”>mail On x, btc miners have been in net selling mode for a significant period of time. The relevant on-chain metric here is the “mining reserve”, which tracks the total number of coins that miners as a whole are carrying in their wallets at the moment.
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When the value of this indicator increases, it means that on-chain validators are adding a net amount of tokens to their combined holdings. This trend may be a sign that this group is accumulating, which may naturally be bullish for the asset's price.
On the other hand, the metric seeing a decline suggests that miners are withdrawing coins from their addresses. The main reason why this group makes these types of transactions is for selling-related purposes, so this type of trend can have a bearish impact on btc.
Now, here is a chart showing the trend in the bitcoin mining pool over the past year:
As shown in the chart above, the bitcoin mining pool has been going through a steady downtrend during this window. There have been some brief periods of deviation, but the overall trajectory has remained downward.
Historically, miners have had a presence as constant sellers on the network. The reason behind this is the fact that these chain validators have constant running costs in the form of electricity bills, which they pay by selling their btc rewards for fiat money.
However, overall, despite being regular sellers, miners do not pose much of a threat to the price as their sales tend to be of a scale that the market can easily absorb. That being said, you have to be on the lookout for occasions when they are involved in a major liquidation.
At the beginning of this year, bitcoin miners had a total of 1.99 million btc in their reserve. Today, the same metric stands at 1.90 million btc, implying that miners have sold 90,000 btc (around $9.3 billion at the current exchange rate) or 4.74% of their holdings.
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This is a notable amount on its own, but when you consider the context that this sale occurred over a period of time rather than within a narrow window, the liquidation ceases to be too interesting.
“Miners download constantly, but not in large quantities,” says the analyst. “This suggests they are probably selling to cover operating costs.” As such, bitcoin may not feel any major bearish effects from this miner sell-off.
However, the mining reserve may still need to be watched in the near future, as any sharp change in the metric could mean a new outcome for bitcoin.
btc Price
bitcoin set a new all-time high past the $106,000 mark earlier in the day, but the coin appears to have seen a pullback since then as it is now trading around $104,000.
Dall-E Featured Image, IntoTheBlock.com, TradingView.com Chart
