Bitcoin Miner Reserve Rising: Good News For BTC Bulls?
31 July 2023 - 4:55PM
NEWSBTC
Bitcoin prices have been stagnant, trading below the psychological
$30,000 level. The coin is technically under pressure, declining
from its peaks of around $31,800 recorded in early July
2023. Amid this development, on-chain data reveals that the
Bitcoin miner reserve has been increasing, notwithstanding
prevailing market conditions, bouncing back from May 2023 lows.
According to data from CryptoQuant, the BTC miner reserve stands at
1.841 million as of July 30, up from 1.826 million on May 27.
Bitcoin Miner Reserve Rising The increasing BTC miner reserve and
relatively stable and steady coin prices suggest a sense of
optimism among miners. This could improve sentiment and confidence
among miners, possibly boosting prices and preventing sellers from
pressing the coin even lower. Presently, as mentioned earlier, BTC
is trending below $30,000. In crypto, the Bitcoin miner reserve
measures all BTC in the hands of all miners and mining pools. It
shows the total number of BTC that is yet to be liquidated.
Price-wise, this is important. Miners frequently sell their coins
to cover operational costs and realize profits. Therefore, trackers
often monitor their trading patterns for valuable insights into
market sentiment. Related Reading: Shibarium Hype: Shiba Inu Whales
Boost Appetite, Snag 1 Trillion SHIB Tokens Bitcoin miner reserve
trends are important for traders. However, other critical factors
could influence prices in future sessions, some of which might have
adverse effects. One key consideration is how different countries
decide to regulate cryptocurrencies, including Bitcoin, as their
move can impact liquidity and investor perception.
Regulation, Energy Consumption Criticism Negative For Prices In the
United States, for instance, the approval or rejection of a Bitcoin
Spot ETF by the Securities and Exchange Commission (SEC) could
significantly affect Bitcoin’s price in the months ahead. The
approval of a Bitcoin ETF would enable institutional players to
include Bitcoin in their portfolios, injecting capital into the
crypto markets and potentially increasing liquidity. Currently,
Grayscale’s GBTC, a close-ended trust, allows institutions to get
exposure to Bitcoin without directly buying BTC. Related
Reading: Here’s How Long The Majority Of New Ethereum Wallets Are
Used Before They’re Dumped Beyond price-related factors, Bitcoin’s
proof-of-work network has faced criticism for its substantial
energy consumption to power its operations. In response to
environmental concerns, China banned Bitcoin and crypto mining
activities, resulting in a drop in the network’s hash rate and
negatively impacting BTC prices. Whether the US and Europe will
follow a similar path in the future could also have implications
for Bitcoin’s price trajectory. Featured image from Canva, chart
from TradingView
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024