The Bitcoin miners have recently been seen as factors that can bring a bearish trend for the crypto price. Well, that might sound a bit out of place. Yet that is somewhat true. The Bitcoin market is recently showing signs of serious growth. However, this has not been able to impress the investors enough. In fact, in the recent past, they have seen enough trend reversals. Therefore, they are not willing to submit to the trend so early. This very fact might prove to be really harmful to the market.
However, the Bitcoin miners have also started a phase of distribution. At least, On-chain shows such a fact. This very behaviour of the miners might become bearish for the price of the crypto. Therefore, this is also not good news for Bitcoin investors and enthusiasts. In fact, Ethereum has already grown much and has surpassed Bitcoin. Therefore, it is really a matter of serious concern now. If you wish to learn more details about the activity of Bitcoin miners, this article is the perfect stop for you. Keep reading this article to discover further details.
The Real News about Bitcoin miners
Recently, a post on CryptoQuant pointed out that the way in which the BTC miners are selling may effectively bring down the price very quickly. Here, the “miner reserve” becomes very prominent. It is a type of indicator that shows the total amount of Bitcoin currently stored in the wallets of all Bitcoin miners. Whenever the values on the indicator climb up, it suggests that the miners are depositing the coins into their wallets. This trend, if it runs long, may prove bullish for the market.
On the contrary, if the values keep decreasing on the indicator, it suggests that miners are transferring a net number of coins out of their reserves. This trend should not run for long, as this might prove bearish for the value of Bitcoin. A graph published by CryptoQuant shows that the value of the “miner reserve” is witnessing a downward graph recently. This means that the Bitcoin miners are currently taking advantage of the higher prices of Bitcoin and are distributing the coins out of their reserve. However, this very activity of the miners is likely to bring down the price of Bitcoins very quickly. There might be various reasons for the Bitcoin miners to act in this manner. However, they need to understand that this will harm them in the long run.
Concluding Lines
That is all about the recent distributing trend of the Bitcoin miners. This really needs to be controlled to avoid bearish trends in the Bitcoin market.
Also read: The Data from Glassnode Reveals The Fascinating Aspect of Bear Market Length of Bitcoin
