On-chain data shows that Bitcoin miners have been selling for around a year now. Here’s how much they have sold so far.
Bitcoin Miners Have Shed Over 4% Of Their Holdings In Past Year
As pointed out by CryptoQuant community analyst Maartunn in a new on X, the BTC miners have been in net selling mode for a significant period of time. The on-chain metric of relevance here is the “miner reserve,” which keeps track of the total amount of coins that the miners as a whole are carrying in their wallets right now.
When the value of this indicator rises, it means the chain validators are adding a net number of tokens to their combined holdings. Such a trend can be a sign that this cohort is accumulating, which can naturally be bullish for the asset’s price.
On the other hand, the metric observing a decline suggests the miners are withdrawing coins from their addresses. The main reason why this group makes such transactions is for selling-related purposes, so this kind of trend can have a bearish impact on BTC.
Now, here is a chart that shows the trend in the Bitcoin miner reserve over the past year:
As displayed in the above graph, the Bitcoin miner reserve has gone through a steady downtrend during this window. There have been some brief periods of deviation, but the overall trajectory has remained toward the downside.
Historically, the miners have had a presence as consistent sellers on the network. The reason behind this is the fact that these chain validators have constant running costs in the form of electricity bills, which they pay off by selling their BTC rewards for fiat.
Generally, though, despite being regular sellers, miners don’t pose too much of a threat to the price, as their selling tends to be of a scale that can readily be absorbed by the market. That said, the times that they do participate in a major selloff can be to watch out for.
During the start of this year, the Bitcoin miners held a total of 1.99 million BTC in their reserve. Today, the same metric stands at 1.90 million BTC, implying the miners have sold 90,000 BTC (about $9.3 billion at the current exchange rate) or 4.74% of their holdings.
This is a notable amount on its own, but when considering the context that this selling has come over some length of time rather than inside a narrow window, the selloff stops being too interesting.
“Miners are offloading steadily, but not in large amounts,” notes the analyst. “This suggests they are likely selling to cover operational costs.” As such, it’s possible that Bitcoin wouldn’t feel any major bearish effects from this miner selloff.
The miner reserve could still be to keep an eye on in the near future, however, as any sharp changes in the metric could potentially spell a new outcome for Bitcoin.
BTC Price
Bitcoin set a new all-time high beyond the $106,000 mark earlier in the day, but the coin appears to have seen a pullback since then as it’s now trading around $104,000.
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com