2023-12-31 14:39:31
A decline in miners’ reserves might indicate potential selling pressure. Cryptominers’ Bitcoin reserves fell to their lowest point since May following withdrawals this week.
The pullbacks may indicate increasing selling pressure, as the largest cryptocurrency posted gains of more than 13% in December, according to data from CryptoQuant.
Miner reserves measure the number of coins held in miners’ wallets. The number decreases as the coins enter the exchanges, possibly as a precursor to a sale. All this can even have a negative effect on bullish exchange rate movements.
The decline of miners’ Bitcoin reserves has accelerated
Since mid-October, Bitcoin miners have been reducing their BTC balances virtually continuously. And the decline in reserves accelerated this month. Miner reserves currently stand at 1.832 million BTC, down from a peak of 1.845 million in October.
In a notable move, #Bitcoin miners have sold over 3,000 #BTC in just the last 24 hours, amounting to approximately $129 million. This substantial sell-off might influence the price of $BTC. pic.twitter.com/mUl4ebDwpm
— Ali (@ali_charts) December 28, 2023
In a post on social media platform X, AliCharts pointed out that miners sold 3,000 Bitcoins (BTC) in the last 24 hours, which is equivalent to regarding $129 million. The cryptocurrency is currently trading at $BTC PRICE, down from last week’s high of nearly $44,000.
The net flow of Bitcoin on December 28 was minus 1,524 BTC, which meansthat withdrawals exceeded minting of new coins.
Miners saw a significant increase in revenue in the fourth quarter, as transaction fees jumped in parallel with the increased number of Ordinals subscriptions. Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, highlighted in an analysis how profitable the sector is at the moment;
“Miners generate 50% extra profit on top of Bitcoin price at $64,000”
Meanwhile, as we reported, the expected Bitcoin halving in April is getting closer, which is surrounded by great anticipation. THE Binance According to its former CEO, Changpeng Zhao, the event might push the BTC price to an all-time high. According to some analysts, the price might reach as high as $160,000.
During the halving, miner rewards will decrease from 6.25 BTC to 3.125 BTC per block. As a result, it is possible for weaker miners to be gobbled up by huge and powerful mining companies. In preparation for the competition, companies are trying to purchase the best mining machines for huge sums.
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