Bitcoin miners have been selling off recently, according to on-chain data, but the quant argues that this sell-off should not have a significant impact on the market.
Bitcoin Miner Reserve has recently recorded a decline.
In a CryptoQuant Quicktake post, one analyst discussed the recent selling pressure miners are putting on the market. The metric of interest here is “mining reserves,” which tracks the total amount of Bitcoin miners currently have in their wallets.
This metric can naturally provide information about the collective behavior of these chain validators. Miners typically withdraw coins from their reserves when they want to sell, so a decline in the indicator could potentially have bearish consequences for the asset.
On the other hand, a rise in the indicator could be bullish for cryptocurrency prices as it suggests that all miners are currently in accumulation mode.
Now here is a chart showing the trend of Bitcoin miner holdings over the past year:
The value of the metric seems to have been heading down in recent days | Source: CryptoQuant
As shown in the graph above, Bitcoin miner holdings have been declining since October, meaning this group has withdrawn a net amount of BTC from their wallets during this period.
The recent sell-off by miners has been a hot topic in the community recently, leading to a lot of speculation about the bearish impact it could have. However, quants have a different opinion on this issue.
“The selling of Bitcoin holdings by miners, as discussed on X and various portals, is unfounded,” explains the analyst. To back up this claim, the quant pointed out the exact numbers involved.
Before this sale began, miners’ holdings were approximately 1,84,997 BTC. After the indicator declined since then, miners currently hold approximately 1,833,222 BTC.
This represents a decrease of 12,755 BTC, which is significant in itself, but doesn’t seem like much in the grand scheme of things, especially considering the size of the miner’s reserves themselves. “The minimum amount of Bitcoin sold has a negligible impact on the market,” says the analyst.
The trend in the miner inflows and outflows over the past couple of months | Source: CryptoQuant
The chart above shows data on Bitcoin inflows and outflows generated by miners. In fact, there has been a recent outflow of funds and there is talk of selling it.
At the same time, inflow volume reached significant levels, making up for these outflows. This is why there is a relatively small net decline in total miner reserves.
BTC price
Bitcoin had previously recovered above $43,000, but the asset suffered a setback as it fell to $42,500 over the past day.
Looks like the price of the coin has retraced some of its recent recovery | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, chart from TradingView.com, CryptoQuant.com
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