Key Points
- Bitcoin Miner Reserve has fallen to its lowest level since the start of the year, indicating an increase in miner coin sell-offs.
- Despite the drop, miner-to-exchange activity has seen a decline in the past three months.
Bitcoin Miner Reserve Hits Yearly Low
Data from CryptoQuant reveals that the Bitcoin Miner Reserve has reached its lowest point since the start of the year. This metric measures the amount of coins held in miners’ wallets, indicating the reserve yet to be sold. Currently, there are 1.81 million BTC valued at $125 billion in miner wallets.
A decline in the BTC Miner Reserve suggests that miners on the Bitcoin network are selling their coins for profit or to cover mining costs. After a period of decline, the BTC Miner Reserve began an uptrend on 8th April, as the market anticipated the fourth Bitcoin halving on 19th April. However, post-halving, the metric resumed its downtrend.
Decline in Miner-to-Exchange Activity
Interestingly, data shows a decrease in miner-to-exchange activity over the past three months. The flow of BTC from miners’ wallets to exchanges has dropped by 48% since its year-to-date high on 27th March. This doesn’t necessarily mean miners have stopped selling their coins. Instead, they may be selling their BTCs through Over-the-Counter (OTC) markets or engaging in Peer-to-Peer sales.
At present, BTC is trading at $68,988. The leading cryptocurrency has been facing significant resistance at the $70,000 price level. The coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 57.72 and 40.95 respectively, indicating a rise in buying momentum but also notable selling activity in the market. For BTC’s price to rally past $70,000, buying pressure needs to increase and surpass profit-taking activity.
