Bitcoin miners have continued selling their coins, according to on-chain data, potentially signaling a bearish trend for the digital asset. The miner reserve, an indicator that measures the amount of Bitcoin held in wallets belonging to miners, has been decreasing, implying that miners are transferring some of their coins out of their wallets and possibly selling them. This trend can result in selling pressure in the market, which can cause the price of the asset to decline.
While a decreasing miner reserve can be seen as a bearish signal, the actual extent of the sales compared to their total reserve is not significant, with the miners holding over 1.82 million BTC in their wallets. However, miners who hold onto their coins longer may be key to the health of the Bitcoin upward trend.
The miner reserve saw a sharp drop at the beginning of Bitcoin’s rally in January, indicating that miners were selling their coins to take advantage of the price increase. Since then, the indicator has largely trended downwards, suggesting that miners have not been accumulating the asset in recent months.
Bitcoin’s recent volatility has continued to affect the miner reserve, which has seen a sharp decline again. It remains to be seen if miners will reverse this trend by accumulating the asset, or if they will continue selling off in the short term, both of which could have a significant impact on the price of Bitcoin.
At the time of writing this article, Bitcoin was trading around $28,100, up 3% in the last week. While it is difficult to predict the future of Bitcoin’s price, the behavior of miners is worth monitoring as it can give insight into market trends.