Bitcoin Miner reserves data reveals interesting trading insights
Although the Bitcoin price continues to fluctuate around 22,000 dollars, it seems that miners have hope for a quick turnaround. Over the past seven days, the price of Bitcoin has grown from $ 367 billion on July 1 to $ 414 billion now. In the meantime, there has been an interesting development in terms of mining in recent times.
Does Bitcoin Miner reserves decrease?
According to analysis from Chart Today on Crypto Quant, there has been a significant decline in Bitcoin miner reserves in the last two weeks. This may be an indication of declining confidence in a price reversal despite an upward curve in the Bitcoin price this week. Data revealed that there was a decline of around 4300 Bitcoin in the last two weeks, which indicated hedged positions against falling prices.
The general trend in the Bitcoin mining community seems to be around the transfer of assets to the derivatives market. This is perhaps a clear signal against the expectation of a further fall in the price of Bitcoin.
“Miners generally continue to make transfers to the derivatives market. The miners’ reserve has decreased in the last two weeks by 4300 BTC. Possibly these transfers to the derivatives market are hedges against future falls and not with the intention of selling (in my opinion).
Falling Bitcoin Mining Revenue
Supporting this analysis are Glassnode’s findings as Bitcoin miners are distribute Bitcoin from their reserves. Revenue from Bitcoin mining is said to be down 56% since the heights of the times.
“With Bitcoin mining revenues down 56% since the all time high, we are seeing miners distributing $ BTC from their reserves.”
In addition, the cost of producing Bitcoin increased by 132%, which made things even worse for the mining community.
At the time of writing, the Bitcoin price stands at $ 21,528, up 0.63% in the last 24 hours, according to CoinMarketCap. BTC’s price rose slightly in the last week, with an increase of 11.85%. The price reached a 24-hour high of $ 22,010.
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.
