On-Chain Data Indicates Bitcoin Miners Could Be About To Dump
Yesterday, Bitcoin miners removed a significant quantity of coins from their wallets, indicating they may be intending to sell them.
As noted by an expert in a post on CryptoQuant, the BTC miner reserve has declined over the last day. The “miner reserve” is a statistic that measures the current total amount of Bitcoin saved in the wallets of all miners.
When the value of the statistic increases, it indicates that a net quantity of coins is currently entering miner wallets.
When this pattern persists, it may indicate that these chain validators are accumulating, which is positive for the cryptocurrency’s price. A decreasing reserve value, on the other hand, shows that miners are now withdrawing a net sum of BTC.
This kind of trend might be adverse to the value of BTC since individuals often shift their coins to exchanges for sale.
Bitcoin Miner Reserve
the Bitcoin miner reserve has decreased significantly over the last day. The outflow is the sum of all coins leaving miner wallets. As predicted by the decline in the reserve, the value of this indicator has also reduced significantly.
The “miners’ position index” (MPI) uses the actual outflow to its 365-day moving average. This indicates how current mining sales compare to those seen during the same time period during the previous year.
Yesterday, this indicator showed a significant increase. The past two times such significant price increases occurred, Bitcoin began to decline shortly afterwards (or immediately in case of the spike in April). If historical trends are any indication, this may be negative for the value of the cryptocurrency.