Bitcoin Miner Reserve Rising: Good News For BTC Bulls?

Bitcoin prices have been stagnant, trading below the psychological $30,000 level. The coin is technically under pressure, declining from its peaks of around $31,800 recorded in early July 2023. Amid this development, on-chain data reveals that the Bitcoin miner reserve has been increasing, notwithstanding prevailing market conditions, bouncing back from May 2023 lows. According to data [...]

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Bitcoin Miners Transfer Large Amount To Exchanges, Sign Of Selling?

On-chain data shows that Bitcoin miners have transferred many coins to exchanges today, which may be a sign of selling. Bitcoin Miner To Exchange Flow Has Observed A Huge Spike Today As pointed out by an analyst in a CryptoQuant post, a total of 1,637 BTC was deposited to exchanges by the miners today. There [...]

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U.S. Mining Company Marathon Now Holds 8,133 BTC. And They’re Not Selling It

In their December report, Marathon Digital Holdings announced their total BTC holdings. And assured their investors that they were not selling any of it any time soon. This is particularly interesting considering the company bought “a record number” of S19s in December. Reportedly, they got a giant loan using Bitcoin as collateral. An operation we’ll see a lot more in the near future throughout the industry.  The report quotes Fred Thiel, Marathon’s CEO, in a celebratory mode. “2021 was a transformative year for Marathon as we increased our hash rate 1,790% and increased our bitcoin production 846% year-over-year to 3,197 self-mined BTC.” Staggering numbers that show the size of the Bitcoin mining business. Marathon announced an record investment of nearly $1B in new equipment just before Xmas… BUT THEIR STILL HODLING ALL THEIR #BTC!https://t.co/PRlaHMNR7j — What Bitcoin Did (@WhatBitcoinDid) January 4, 2022 As for their holding plans, the report says: “The Company last sold bitcoin on October 21, 2020, and since then, has been accumulating or “hodling” all bitcoin generated. As a result, Marathon currently holds approximately 8,133 BTC, including the 4,813 BTC the Company purchased in January 2021 for an average price of $31,168 per BTC.” Of course, they’re not alone. NewsBTC documented the trend throughout the whole year.  Most Miners Are Holding Strong One of the first persons to spot the trend was Lex Moskovski. In February, the analyst reported on “the first day since Dec, 27 when Miners Position change turned positive.”  Miners have stopped selling and started accumulating #Bitcoin Yesterday was the first day since Dec, 27 when Miners Position change turned positive. Miners were selling their bitcoins for two months. Bullish. pic.twitter.com/S89iBcz4k3 — Lex Moskovski ?? (@mskvsk) February 27, 2021 Approximately four months ago, NewsBTC used data to find a possible explanation: “Data shows that miner profitability has dropped in comparison to the last time that bitcoin was at this price. The profitability for bitcoin back in April at $50K had been 40% higher than it is right now when bitcoin hit $50K again. This means that miner profitability is hitting the lows at all-time highs. This drop in profitability has seen miners refusing to sell the BTC they are rewarded with for mining blocks. Instead choosing to hold these coins in wait for much higher prices.” Miner profitability might be decreasing, but, the business is still a long way from turning red. Especially for a giant operation like Marathon. In a recent interview that NewsBTC reported on, Fred Thiel said: “Thiel expressed that, factoring operational mining costs (energy plus hosting), Bitcoin’s breakeven rate is roughly $6,500, meaning that the digital coin would need to drop at least 80% for Marathon to face challenging difficulties.” Less than three months ago, NewsBTC reported on another set of data that showed the same phenomenon: “BTC miner reserves continue to trend sideways amid the coin’s strong move up. The “miner reserve” is a indicator that shows the total amount of Bitcoin that miners are currently holding in their wallets. An increase in the metric’s value suggests miners think the coin’s value will go up in the near future, hence they are stocking up on it.” BTC price chart for 01/05/2021 on FX | Source: BTC/USD on TradingView.com The Marathon Mining Company’s Future The company’s recent billion-dollar investment is a play for the future. Especially considering just when those machines will arrive. “On December 23, 2021, Marathon announced that it had entered into a contract with BITMAIN to purchase a record number of ANTMINER S19 XP (140 TH/s) bitcoin miners, all of which are currently expected to ship from BITMAIN between July 2022 and December 2022.” The chip shortage is real, people. If an order this size can only be fulfilled in six to twelve months, something’s up. Also, by the looks of it, the ASIC manufacturing business might be even more profitable than Bitcoin mining. That’s a topic for another day, however. Featured Image by Martinš Zemlickis on Unsplash - Charts by TradingView

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Bitcoin Miner Reserves Drop To June 2021 Levels, What This Means For Price

Bitcoin miner reserves can often be a tell for where the market could be headed next due to their large holdings. These reserves going up or down can pinpoint how miners are looking at the market, and a drop in their reserves can be bad for the BTC price. Miners Reserves Drop By 14,000 BTC [...]

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Bitcoin Miner Selloff Poses “Negligible Impact”, Quant Argues

On-chain data shows the Bitcoin miners have been selling recently, but this quant has argued that this selloff shouldn’t have much impact on the market. Bitcoin Miner Reserve Has Registered A Decline Recently In a CryptoQuant Quicktake post, an analyst discussed the latest selling pressure that the miners have been putting on the market. The indicator of interest here is the “miner reserve,” which keeps track of the total amount of Bitcoin that the miners combined hold in their wallets right now. This metric can naturally provide information about the collective behavior of these chain validators. Generally, the miners withdraw their coins from their reserve when they want to sell, so a decline in the indicator can potentially have bearish consequences for the asset. Related Reading: These Crypto Asset Classes Could Be Future Market Drivers: Santiment A rise in the metric, on the other hand, may be bullish for the cryptocurrency’s price as it suggests the miners as a whole are in accumulation mode at the moment. Now, here is a chart that shows the trend in the Bitcoin miner reserve over the past year: The value of the metric seems to have been heading down in recent days | Source: CryptoQuant As displayed in the above graph, the Bitcoin miner reserve has been on its way down since October, implying that this cohort has withdrawn a net amount of BTC from their wallets during this period. This latest selloff from the miners has recently been a topic in the community, with many speculating about the possible bearish impact arising from it. The quant has a different opinion on the matter, however. “The sell-off of Bitcoin reserves by miners, as discussed on X and various portals, is unfounded,” explains the analyst. To back this claim, the quant has pointed out the exact numbers involved here. Before this selling started, the miner reserve had a value of around 1,84,997 BTC. Following the decline that the indicator has witnessed since then, the miners now hold about 1,833,222 BTC. This represents a decrease of 12,755 BTC, which, although substantial on its own, doesn’t seem too large in the grand scheme of things, especially considering the size of the miner reserve itself. “The minimal amount of bitcoin sold has negligible impact on the market,” notes the analyst. The trend in the miner inflows and outflows over the past couple of months | Source: CryptoQuant The above chart shows the data for the Bitcoin inflows and outflows being made by the miners. There have indeed been outflows taking place recently, which is why there has been talk of a selloff. Related Reading: Bitcoin Rally Still Has Some Legs Left, Santiment Explains Why At the same time, the inflow transaction volume has also been at significant levels, making up for these outflows. This is the reason for the relatively small net decrease in the total miner reserve. BTC Price Bitcoin had recovered beyond the $43,000 mark earlier, but the asset has seen a setback during the past day as it has slipped back towards $42,500. Looks like the price of the coin has retraced some of its recent recovery | Source: BTCUSD on TradingView Featured image from Shutterstock.com, charts from TradingView.com, CryptoQuant.com

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