Data from CryptoQuant on February 5 shows that Bitcoin miners have stopped selling their coins.
According to streams, bitcoin miners’ reserves have been flat since January 19. This was the day that bitcoin miners didn’t sell their coins.
The change in the trend of BTC reserves happened around the same time that Bitcoin prices went up again in the middle of January 2022.
Since January 19, BTC’s price has increased from $21,081 to $23,063. Reserves stayed the same, at about $1,837 million.
Traders keep an eye on how many coins miners have. The bitcoin miner reserve information is based on the number of coins in addresses belonging to miners. But the tracker needs to show how many coins different mining pools or farms hold.
Miners’ job is to confirm transaction blocks and keep the network safe. They have to spend money on new equipment, electricity bills, and salaries. Currently, the Bitcoin network gives 6.25 BTC to every successful miner.
No matter how challenging the game is, coins are given out every 10 minutes. In the last adjustment, the difficulty level went up by 4.68 percent because BTC prices have increased.
When miners stop selling coins on centralized exchanges like Coinbase, Binance, or over-the-counter (OTC) desks, their reserves usually go up. This increase in their reserves could mean they have faith in the markets and expect prices to rise more in the coming months. On the other hand, when reserves are dropping quickly, they may worry that the needs will lose more in the next session.
Since BTC reserves are growing at the same rate as spot prices, there could be more gains in the future. After falling to as low as $15,300 in Q4 2022, prices began to rise again in January.
The sell-off was sped up by the failure of FTX, a cryptocurrency exchange, and by the failure of several CeFi platforms, mostly lending platforms. The price of Bitcoin dropped from $20,000 to a low of $200.
Trackers show that the price of BTC is $23,135, an increase of 37% in the last month.
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