Bitcoin Miners Decrease BTC Holdings to Three-Year Low
Bitcoin miners have significantly decreased their BTC reserves over the past few months, reaching their lowest level since January 2021. This reduction can be attributed to the recent halving upgrade in April, which cut the coinbase reward miners receive per new block found. As a result, the total amount of Bitcoin held by miners has dropped to a three-year low.
Miner Bitcoin Reserves Hit a Three-Year Low
- The amount of Bitcoin held by miners has plummeted to around 1.5 million BTC, valued at approximately $86 billion.
- Miners have been selling tokens since the cryptocurrency market rallied in late 2023, using the proceeds to fund their operations.
- Data from CryptoQuant indicates a severe downtrend in miner reserves, with reserves estimated to be around 1.8 million BTC.
Publicly Traded Mining Firms Increase Bitcoin Holdings
- Despite the decline in miner reserves, companies like CleanSpark and Riot Platforms have boosted their Bitcoin holdings by 60% since the beginning of the year.
- Marathon Digital Holdings recently invested $100 million in Bitcoin, showing continued interest in the cryptocurrency.
- However, the industry as a whole is facing challenges, with Core Scientific reporting an $804 million loss in the second quarter.
Bitcoin Price Chart Nearing Bearish “Death Cross”
Miners’ reserves are dwindling as Bitcoin’s price chart approaches a potentially bearish technical pattern known as the “death cross.”
- A death cross occurs when a short-term moving average falls below a longer-term moving average.
- Investopedia suggests that historical data on death crosses often precedes a near-term rebound with above-average returns.
- Bitcoin previously experienced a death cross in October 2023, leading to a bull run and a new all-time high around $73,000 after the approval of spot Bitcoin ETFs by the SEC in January 2024.
Mysterious Bitcoin Market Activity Amid Death Cross Formation
The current death cross formation follows a surge in demand that saw permanent holders accumulate nearly $23 billion worth of Bitcoin in the past month. This unusual buying spree has sparked speculation and interest in the cryptocurrency market.
Hot Take: Bitcoin Miners Reduce BTC Holdings Amid “Death Cross” Formation
Bitcoin miners have significantly reduced their BTC reserves to a three-year low, coinciding with the formation of a potential “death cross” on the price chart. While market observers remain cautious, past instances of death crosses have been followed by notable rebounds in Bitcoin’s price.
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