On-chain data shows that Bitcoin miners have expanded their reserves recently, a sign that could be bullish for the asset’s price.
Bitcoin Miner Reserve has been on the rise lately
As noted by an analyst in a CryptoQuant after, BTC miners have accumulated over the past 48 days. The indicator of interest here is the “miner reserve”, which measures the total amount of Bitcoin that all miners currently hold in their wallets.
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When the value of this metric decreases, it means that the miners are currently withdrawing coins from their wallets. Generally, these chain validators only take coins from their reserve when they want to sell them, so this kind of trend can have bearish implications for the price.
On the other hand, the indicator increasing in value implies that the miners are adding a net amount of BTC to their wallets. Such a trend could be a sign that these investors are currently accumulating and thus could be bullish for the cryptocurrency.
Now, here is a chart showing the trend in the Bitcoin miner reserve over the past few months:
The value of the metric has been steadily going up in recent days | Source: CryptoQuant
As can be seen in the chart above, the Bitcoin miner reserve had seen a major surge in May, but shortly after this surge, this cohort began selling off as the price of the asset continued to struggle.
However, after the June rally, the value of the indicator had stabilized, meaning that these investors sold the same amount as they added to their holdings.
In recent weeks, this sideways trend has slowly turned into an uptrend as miners have gradually increased their reserves. In the past 48 days, these chain validators have added a total of approximately 4,060 BTC to their holdings.
This amount is worth about $118 million at the current exchange rate, which is not a ton given the size of the total miner reserve, but it is nevertheless a positive sign that the miners have accumulated despite the price of the cryptocurrency falling some lately. observe a decrease.
A notable portion of this latest accumulation by the miners comes from one mining pool, AntPool, as the chart below shows.
Looks like miners belonging to this pool have been accumulating | Source: CryptoQuant
In the past 52 days, the AntPool Bitcoin mining pool has added a total of approximately 1,020 BTC to their reserves, which is more than 25% of the total accumulation that all miners have participated in during this period.
The quant has also attached the data for the exchange flows (as well as the normal outflows/inflows) for this mining pool. Previously, there was some concern in the market that these miners might be selling while depositing to exchanges, but as it turned out, this cohort was just transferring their coins back and forth from these platforms.
BTC price
At the time of writing, Bitcoin is trading around $29,100, up 1% over the past week.
BTC has been moving sideways recently | Source: BTCUSD on TradingView
Featured image from iStock.com, charts from TradingView.com, CryptoQuant.com