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On-chain data shows that Bitcoin miners have been trading for almost a year now. Here’s how much they’ve sold so far.
Bitcoin Miners Spent Over 4% of Their Catches Last Year
As noted by CryptoQuant community analyst Maartunn in a new post on X, BTC miners have been in net sales mode for a significant amount of time. The on-chain metric of relevance here is the “mining workstation,” which keeps track of the total number of coins that miners collectively currently hold in their wallets.
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When the value of this index increases, it means that chain validators can add a net number of tokens to their combined holdings. Such a trend could be a sign that this group is accumulating, which could be bullish for the stock price.
On the other hand, the metric that sees the drop suggests that miners are withdrawing coins from their addresses. The main reason why this group makes such transactions is for purposes related to sales, so this type of trend can have a bearish effect on BTC.
Now, here is a chart that shows the trend in the storage of Bitcoin miners over the past year:
As shown in the graph above, the Bitcoin Miner reserve has gone through a strong decline during this window. There have been some brief periods of deviation, but the overall trend remains downward.
Historically, miners have existed as fixed sellers in the network. The reason for this is the fact that these chain guarantees have constant running costs in the form of electricity bills, which they pay by selling their BTC rewards for fiat.
However, in general, despite being common traders, miners do not pose much of a threat to the price, as their sales are usually at a scale that can be easily absorbed by the market. That said, the times they participate in a major selloff can be something to watch out for.
At the beginning of this year, Bitcoin miners held a total of 1.99 million BTC in their storage. Today, the same metric stands at 1.90 million BTC, which means that miners sold 90,000 BTC (about $9.3 billion at the current exchange rate) or 4.74% of their holdings.
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This is a significant amount in itself, but considering the context that these sales have come over a long period of time rather than within a small window, the selloff ceases to be very interesting.
“Miners are pouring slowly, but not in large quantities,” commented the analyst. “This suggests that they may be selling to cover operating costs.” Therefore, it is possible that Bitcoin will not feel any major effects from this miner selloff.
The miner’s repository should still be watched in the near future, however, as any sharp changes in the metric could mean a new result for Bitcoin.
BTC price
Bitcoin set a new high above $106,000 earlier in the day, but the coin seems to have seen a pullback since then as it is now trading around $104,000.
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
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