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Highlights
- Bitcoin miner reserves just plummet to its lowest level since July 2021
- The Bitcoin miner selloff is coming months before next halving
- Implication for Bitcoin price remains bearish
Bitcoin Miner Reserves are gradually being depleted and according to a recent X post, there has been more plunge in the past 48 hours.
Bitcoin Miners Reserve Plunge by $600M
According to data from crypto analytics provider CryptoQuant, Bitcoin miners’ reserves have fallen by more than 14,000 BTC in the last two days.
This amounted to a loss of approximately $600 million. It is worth noting that this is the lowest that it has dropped to since July 2021. By all indications, Bitcoin miners are busy selling out their Bitcoin holdings.
Miner Reserves Fall to Lowest Level Since July 2021
“In the last two days, miner reserves have fallen by more than 14 thousand BTC, approximately $600 million in reduction.” – By @caueconomy
Link 👇https://t.co/RTyVXb8I51
— CryptoQuant.com (@cryptoquant_com) February 2, 2024
Such Bitcoin miner reserve’s downward curve movement is not a good sign for BTC traders. Particularly, the negative momentum might likely trigger a Bitcoin price drop as miners offloading is a major vote of no confidence in the network in general.
At press time, Bitcoin was trading at $42,992.69, up 2% in 24 hours. This growth outlook is an indication that the coin is recovering from its previous level weekly low of $38,000. The possibility of having the flagship cryptocurrency return to the $38,000 resistance level exists, especially with the state of the miners’ reserve.
Bitcoin Price and the Post Halving Outlook
On the other hand, some market experts believe that Bitcoin is already moving towards a pre-halving positive price of $50,000. SkyBridge’s Anthony Scaramucci strongly believes that the value of the coin could reach as high as $170,000 after the halving event scheduled to hold something in April, later this year.
However, there are suspicions that the selling pressure from Bitcoin miners may be a result of this expected halving event. Ordinarily, during the Bitcoin halving event, the rate at which new BTCs are created is reduced and this directly impacts the amount of new supply.
Hence, the question that may be in the minds of several market observers is: Why are miners selling ahead of the halving event? Considering the stance of top industry players like Scaramucci on Bitcoin post-halving, the depletion of Bitcoin miners’ reserve is probably a move in the wrong direction.
At the same time, one could consider that these miners may be selling off their BTC holding to offset operational and mining costs including electricity and hosting fees. Noteworthy, mining electricity consumption is quickly skyrocketing, thereby leading to increased costs.
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