Bitcoin Miner Reserves Reach $117 Billion Amid Price Decline
Bitcoin miners have significantly increased their reserves, reaching a value of $117 billion, according to a CryptoQuant analyst known as The Kriptolik. This accumulation comes as miners refrain from sending their coins to exchanges, despite the ongoing decline in Bitcoin’s (BTC) price.
BTC miner-to-exchange activity has decreased over the past few weeks. The 30-day moving average of the BTC Miner to Exchange Flow has dropped by 11% since early June. This trend suggests that miners are holding onto their BTC in anticipation of a price rally, rather than selling at current market prices. according to Ambcrypto.
Kriptolik noted that BTC miner reserves have climbed to a two-week high, indicating the amount of coins held in miners’ wallets that have not yet been sold. This strategic accumulation is likely due to the recent poor price performance of BTC, leading miners to opt for holding rather than offloading their holdings.
“Despite miner reserves reaching the highest level in the last two weeks, miners are not sending significant amounts of BTC to exchanges to sell, instead opting to accumulate due to the decline in BTC price,” Kriptolik explained.
The current BTC price is $64,403, having been on a downtrend since June 7. Key momentum indicators, such as the Relative Strength Index (RSI) and Money Flow Index (MFI), are both positioned below their respective center lines, indicating a bearish market. The RSI stands at 37.81, and the MFI is at 34.89, revealing that BTC distribution is outweighing accumulation among market participants.
Additionally, the Elder-Ray Index, which measures the relationship between buyer and seller strength, has been negative since the downtrend began, further confirming the bearish bias.
If this downtrend continues, BTC’s price might drop to $63,382, adding pressure on miners who are currently holding out for a potential price surge. The accumulation of BTC by miners suggests they are preparing for a future uptrend, which could lead to significant selling pressure once the price begins to recover.
