6 C
Amsterdam
23 January 2022
PumpMoonshot
Image default
Altcoins

Bitcoin Miners Show Strong Accumulation As Their Inventories Spike Up

On-chain data shows Bitcoin miner reserve has showed a sharp spike recently, suggesting that miners are currently loading up on the crypto.

Bitcoin Miner Reserve Shoots Up; Trend Of Accumulation From Last Year Continues

As pointed out by an analyst in a CryptoQuant post, the BTC miner reserve has shown strong uptrend recently. This seems to be a continuation of the accumulation trend from the last year.

The “miner reserve” is an indicator that tells us the total amount of Bitcoin currently stored in the wallets of miners.

Advertisement

When the trend in the metric is towards up, it means miner inventories are growing as they stock up on more of the coin. Such a trend can be bullish for the price of the coin as it shows miners are currently accumulating BTC.

On the other hand, a downtrend in the indicator implies miners have started to dump their Bitcoin. This kind of trend is naturally bearish for the price of the crypto as miners usually sell in big amounts.

Now, here is a chart that shows the trend in the BTC miner reserve over the past couple of years:

Advertisement

Bitcoin Miner Reserve
Looks like the value of the indicator has showed sharp uptrend recently | Source: CryptoQuant

As you can see in the above graph, the miner reserve has been gradually moving up since May. A few days back, when the price of Bitcoin dropped down to $39k, the metric showed a huge spike up as miners bought the dip.

Miners have traditionally been big sellers in the market as they have had to sell some of what they mine to keep their operations running. However, as BTC’s price has risen, and their machines have gotten more advanced and efficient, miners have started selling lesser as it’s enough to sustain electricity and other mining costs.

Miners, who have originally always brought selling pressure to the market, have been shifting towards becoming hodlers for a coupe of years now. This can be quite bullish for the price of the coin in the long term.

BTC Price

At the time of writing, Bitcoin’s price floats around $42k, down 0.6% in the last seven days. Over the past month, the crypto has lost 10% in value.

Advertisement

The below chart shows the trend in the price of BTC over the last few days.

Bitcoin Price Chart
BTC's price plunges down after breaking above $44k | Source: BTCUSD on TradingView

BTC managed to reach as high as $44.4k in its recent move up, but today the crypto has once again come back down, erasing the gains of the past couple of days.

Related posts

Axie Infinity price keeps sight on $190 as AXS bulls not ready to give up yet

PumpMoonshot

Cryptocurrencies Price Prediction: Bitcoin, Ethereum and BAND – European Wrap 17 September

PumpMoonshot

IOTA’s Charlie Varley speaks on Ledger delay and rebuilding the Firefly team

PumpMoonshot

Leave a Comment