The price of Bitcoin has been in a good recovery form in recent days, making its way back above $43,000 this week. However, the latest on-chain data shows that miners have been offloading their BTC, as they seem to be engaging in a selloff ahead of the halving event in April.
Miners Sell $600 Million Worth Of BTC In Two Days: CryptoQuant
In a CryptoQuant Quicktake post, a pseudonymous analyst revealed that the Bitcoin miner reserves have been on a decline in the past few days. The relevant metric here is the “miner reserve,” which tracks the total amount of BTC held in affiliated miners’ wallets.
Typically, this figure represents the Bitcoin reserve that miners are yet to sell to the open market. According to on-chain intelligence firm CryptoQuant, a dip in miner reserves often suggests potential selling pressure for the flagship cryptocurrency.
A chart showing the BTC miner reserve and price | Source: CryptoQuant
According to CryptoQuant data, the miner reserves have slumped by over 14,000 BTC (worth about $600 million) over the past two days. The “miner reserve” metric has been on a downward trend as far back as August 2022.
This latest decline has driven the indicator to its lowest level in nearly three years (since July 2021). While miners could be transferring substantial amounts of Bitcoin out of their wallets for various reasons, selling is one of the most probable reasons for the movement of funds.
In fact, the pseudonymous author of the Quicktake post mentioned that “interaction on exchange by miners” has increased in recent weeks. This interaction has intensified since the start of spot ETF trading in the US, the analyst noted.
This argument is further supported by the “Miner to Exchange Flow” indicator, which has been on the rise in the past few weeks. This metric measures the amount of Bitcoin that miners are moving to centralized exchanges. Generally, investors transfer their coins to these platforms for selling.
These miner selloffs often don’t have any impact on the price of Bitcoin, as the bearish pressure is readily absorbed by the market. Nevertheless, this on-chain perspective offers insight into market dynamics and the crypto ecosystem.
Bitcoin Price
As of this writing, the Bitcoin price is down by a mere 0.1% while trading a little above $43,100. Meanwhile, the premier cryptocurrency has registered an over 3% profit on the weekly timeframe.
BTC continues to maintain its position as the largest cryptocurrency in the sector, with a market capitalization of roughly $846 billion.
The Bitcoin price surges toward $44,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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Author: Opeyemi Sule
