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- Bitcoin miners continue to follow the trend of holding, miner reserves now reach the year high, breaking the previous reserve high record set six months ago.
- If the total value of miner reserves goes up, the prices of Bitcoin might go bullish, but if the value of miner reserves goes down, the prices might go bearish.
- Miners holding their BTCs might create scarcity, and prices may increase again. Now that Bitcoin surpassed the $50k mark, the recession is considered to fade away.
The data about Bitcoin’s on-chain activities shows that miners still continue to pile up their reserves, which now have reached the year high. As per the reports by a community drive analytics platform, Bitcoin miners have continued to pursue the trend of piling up reserves for some time now, and in recent time, broke the record of 2021, which was set six months ago.
Miner Reserves Decides The Bullish Or Bearish Nature
The total count of Bitcoins that are currently kept away in the wallets of miners is indicated by the miner reserves. If the value of these reserves moves downward, it indicates that the miners have initiated transferring their BTCs to other locations, primarily to exchanges. This sometimes may even indicate that miners did start dumping their own crypto. However, this might not be good for the market and be proven bearish for Bitcoin prices.
Also, if the value of the miner reserves increases, it indicates that miners continue to follow the trend and pile up their BTCs in their wallets. However, this might positively affect the market and be proven bullish for Bitcoin prices.
Miner Reserves Over The Year
The value of miner reserves constantly went up and down throughout the year. The data also shows Bitcoin miner reserves surpassing their own record of high reserves about six months ago. Though the miners’ reserves show a distribution period, the primary trend stays with piling up reserves. This also indicates that miners are now more bullish on BTC as they acquire more Bitcoins compared to when it reached its all-time high of about $68,789.
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Miners Built The Selling Pressure
The miners have recently been the actual net spenders, and they are held responsible simultaneously for adding the selling pressure on the market. But, as of now, the data explains that the behavior of these traditional miners is now shifted on holding. However, this shift of miners from being sellers to holders might bring Bitcoin’s scarcity up and may benefit Bitcoin’s prices.
Bitcoin’s Current Scenario
Bitcoin carries a max supply of 21 million, with 18 million being the circulating supply. It has an average trading price of $48,696.62 with an all-time low of $65.53. The coin is currently trading at $58,896.51 after a downtrend of 0.58%, and it has lost about 11% of its value in a month. The chart below shows Bitcoin’s price fluctuation of more than a month, from its all-time high to date.
As shown in the chart, Bitcoin prices seem to be stuck in the range of $45,000 to $50,000 for quite a long. But, since its price broke past $50,000 again, the recession may soon come to an end.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
