Bitcoin Miners Show Accumulation Again, Bullish Sign?
August 08 2023 - 11:00AM
NEWSBTC
On-chain data shows that Bitcoin miners have been expanding their
reserves recently, a sign that could be bullish for the asset’s
price. Bitcoin Miner Reserve Has Been Trending Up Recently As
pointed out by an analyst in a CryptoQuant post, BTC miners have
been accumulating during the past 48 days. The indicator of
interest here is the “miner reserve,” which measures the total
amount of Bitcoin that all miners are holding in their wallets
right now. Related Reading: These Bitcoin Metrics Are At Important
Retests, Will Bullish Trend Prevail? When the value of this metric
goes down, it means that the miners are withdrawing coins from
their wallets currently. Generally, these chain validators only
transfer coins out of their reserve whenever they want to sell
them, so this kind of trend can have bearish implications for the
price. On the other hand, the indicator increasing in value implies
the miners are adding a net amount of BTC to their wallets. Such a
trend can be a sign that these investors are accumulating at the
moment, and hence, can be bullish for the cryptocurrency. Now, here
is a chart that shows the trend in the Bitcoin miner reserve over
the last couple of months: The value of the metric has been
steadily going up in recent days | Source: CryptoQuant As shown in
the above graph, the Bitcoin miner reserve had observed a large
rise back in May, but soon after this increase, this cohort started
selling as the asset’s price continued to show struggle. After the
rally had taken place in June, however, the indicator’s value had
stabilized, meaning that these investors were selling the same
amount as they were adding to their holdings. In the last few
weeks, this sideways trend has slowly turned into an uptrend, as
the miners have been gradually expanding their reserves. In the
past 48 days, these chain validators have added a total of around
4,060 BTC to their holdings. This amount is worth around $118
million at the current exchange rate, which isn’t a ton given the
scale of the total miner reserve, but it’s still nonetheless a
positive sign that the miners have been accumulating despite the
cryptocurrency’s price observing some decline recently. A notable
portion of this latest accumulation by the miners has come from one
mining pool, AntPool, as the below chart displays. Looks like
miners belonging to this pool have been accumulating | Source:
CryptoQuant In the past 52 days, the AntPool Bitcoin mining pool
has added a total of about 1,020 BTC to their reserves, which is
more than 25% of the total accumulation that all the miners have
participated in during this period. Related Reading: Shiba Inu Sees
10% Pullback, But Here’s Why Rally Can Still Continue The quant has
also attached the data for the exchange flows (as well the normal
outflows/inflow) for this mining pool. Earlier, there was some
concern around the market that these miners may have been selling
as they were depositing to exchanges, but as it turned out, this
cohort was merely transferring their coins back and forth from
these platforms. BTC Price At the time of writing, Bitcoin is
trading around $29,100, up 1% in the last week. BTC has been moving
sideways recently | Source: BTCUSD on TradingView Featured image
from iStock.com, charts from TradingView.com, CryptoQuant.com
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