The unrest in China related to mining activities led miners to an exodus. As miners relocated their systems to Kazakhstan and the United States, among other countries, the Bitcoin miner reserves were closing in on its all-time high observed in May.
Bitcoin Miner Reserves
Bitcoin Miner Reserves indicates the sentiment of the miners at the current price. The number of coins they hold in their wallet suggested whether the market was witnessing a selling pressure or buying pressure. Currently, the value of this indicator was close to hitting an ATH last observed in May when the BTC value was at $56,000.
At the time of press, BTC was exchanging hands at $45,355, but the miners’ reserves have reached the May peak as highlighted by the data provided by CryptoQuant.
Miners were among the big holders of the digital asset and a lack of selling pressure from the miners can be a bullish sign of Bitcoin’s ongoing recovery.
As per analyst, Jan Wuestenfeld
“THE FACT THAT MINERS ARE NOT UNDER PRESSURE TO SELL THEIR BTC AT THESE PRICES IS A TESTAMENT TO THE HEALTH AND RESILIENCE OF THE MINERS AND THE NETWORK. HASHRATE IS ALSO SLOWLY RECOVERING, BUT IT LOOKS LIKE THE RELOCATION OF MINERS TAKES TIME.”
As miners continued to add more BTC to their reserves over the last week, the price of Bitcoin could be gaining strength at this level too.
As pointed out by the analysts, even the hash rate was also recovering.
The drop in hash rate was caused due to China’s crackdown on mining activities. The price also mirrored this loss in the spot market, but now that the hash rate and miners reserves were recovering.
Although the signs in the market were turning in support of a rally, the unpredictability of the market has remained a concern even as BTC recovers.