Bitcoin miners and the mining hash rates have been the talk of the crypto town for a while now. In October, the network’s hash rate was soaring at high rates increasing the difficulty level in mining but the recent decline in hash rates brought relief to the miners as reported by Todayq.
However, recent data reflects that miner reserves have been on a declining trend in the past week. The data shows that Bitcoin miners have dumped over 7.7k Bitcoin in the last week, bringing about an estimated 10% decrease in their reserves in the mentioned period.
According to Glassnode’s weekly report, the latest depreciating trend in the miners’ reserves has been the sharpest since September 2018. The Glassnode graph signifies “Miner Balance”, an indicator that estimates the total amount of Bitcoin currently residing in the wallets of the miners.
The upward slope of the graph indicates increasing amounts in the wallets i.e. miners are transferring coins to their wallets at that moment. The upward graph trend continuing might indicate accumulation from the chain validators, and could even prove to be a bullish factor for the coins’ price.
Contrary to it, if the slope is downwards implying a declining trend in the indicator suggests miners are withdrawing Bitcoin from their reserves. Usually, miners withdraw from their reserves i.e. wallets for selling purposes, hinting at a bearish trend for the crypto market.
A look into the graph and its timeline give an idea that the miner balance in recent times has dropped given the ongoing market chaos triggered by the alleged collapse of FTX. In the last week or so, the metric’s value has significantly dropped by 7.76 k Bitcoin, implying a total decline of about 9.5%.
Additionally, the graph indicates data for the “Miner Net Position Change”, also known as Netflow. It is an estimate of the total number of coins miners are depositing or withdrawing from their wallets. The graph suggests that miners are currently spending at a rate of 6.45k Bitcoin monthly, a value higher than any selloff in the past few years.
In recent times, miners have been under extensive pressure due to the prolonged bear market plunging their profits, and hence with the ongoing chaos, they had no other option than to liquidate their asset holdings.
At the time of writing, Bitcoin is trading at $16,823.70, which is a 0.34% drop from the previous day and about a 1.10% drop over the past 5 days.