Bitcoin Miner Reserves Hit Multi-Year Lows

Low Bitcoin miner reserves are a bullish indicator. Miners holding fewer bitcoins indicate they might have sold a significant amount to cover mining expenses, lowering the immediate selling pressure.

Data from IntoTheBlock shows a gradual drop in BTC miner reserves. At the beginning of the year, miner reserves sat at 1.95 million BTC. This has since dropped to 1.90 million coins, the lowest level recorded in 14 years.

However, despite the drop in miner reserves, the fiat value of their holdings has remained high, reaching a record peak of $135 billion. This indicates that miners are prioritizing short-term profitability, evidenced by their high selling activity, which is currently at its highest level since March.

According to QuintenFrancois, an analyst at X, the miner behavior is reminiscent of the last halving cycle, with the analysis suggesting that Bitcoin could potentially break the current pattern after 150 days.

The high miner selling activity is largely attributed to the need to cover mining expenses, especially after the halving event, which reduces mining rewards by half.

Meanwhile, as Bitcoin continues to trade rangebound and miner reserves hit multi-year lows, some analysts believe that an uptrend may be imminent.

According to Michael van de Poppe, BTC has bottomed at the $63K-$65K range, and the only trend expected is an uptrend.

The bullish outlook was also shared by Dann Crypto Trades, who observed that Bitcoin’s spot premium has returned to healthy levels.

The spot premium indicates the price difference between BTC traded on the spot market and futures markets. A positive spot premium signifies a higher immediate demand for Bitcoin in the spot market.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-miner-reserves-hit-multi-lows.html

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