Bitcoin Miner Reserves Plummet to Multi-Year Lows

Low Bitcoin miner reserves are an indicator of growth. Miners with fewer bitcoins indicate that they may have sold a significant amount to cover mining costs, reducing immediate selling pressure. However, mining companies also appear to be one of the driving forces behind the recent downtrend. The miner’s over-the-counter sales volume rose to its highest level since March. This indicates that the recent downtrend was caused by this activity. Despite strong sales activity, the paper value of miners’ assets reached an all-time high of $135 billion, indicating that miners are choosing short-term profitability over long-term accumulation. According to one of X’s analysts, Quintenfrancois, the behavior of miners is similar to the last halving cycle. The analyst believes that Bitcoin will potentially break the current standard in 150 days. Miners tend to sell after the halving, when their rewards are halved to cover mining costs, which may explain the current trend Bitcoin is ready for an uptrend As miner reserves dwindle and Bitcoin continues to trade in a tight range, analysts suggest that an uptrend could be just around the corner. According to Michael Van de Pop, BTC fell in the $63-65k range, with the only expected trend being an uptrend. The optimism was also shared by analyst Dan Crypto Trades, who noted that Bitcoin’s premium has returned to healthy levels. The spot premium shows the difference in price between BTC traded on the spot market and BTC traded on the futures markets. The positive premium now indicates there may be immediate demand for Bitcoin. However, Santiment notes that even if an uptrend does occur, it will not be very significant as the market remains “scared or disinterested.” This trend is indicative of widespread fear, uncertainty and doubt (FUD). The Bitcoin Fear and Green Index is at 60, indicating greed and confirming the change in investor sentiment.