Ljubljana, Slovenia – May 12th Bitcoin Gold cryptocurrency trading chart on smartphone close-up.
On-chain data shows that bitcoin miners have been adding to their reserves of late, a sign that could be bullish on the asset’s price.
The bitcoin miner reserve has been on an uptrend lately
As one analyst pointed out in a CryptoQuant post, BTC miners have been accumulating over the past 48 days. The indicator of interest here is “miner reserve,” which measures the total amount of bitcoin all miners are currently holding in their wallets.
Related Reading: These Bitcoin Metrics Are Facing Important Retests. Will the uptrend prevail?
When the value of this metric decreases, it means that miners are currently withdrawing coins from their wallets. Generally, these chain validators only transfer coins from their reserve when they want to sell them, so such a trend can have a negative impact on the price.
On the other hand, the increase in value of the indicator suggests that miners are adding a net amount of BTC to their wallets. Such a trend can be a sign that these investors are currently piling up their holdings and can therefore be bullish on the cryptocurrency.
Here is a chart showing the trend of bitcoin miner reserve over the past few months:
The value of the metric has been steadily increasing for the past few days | Source: CryptoQuant
As shown in the chart above, the Bitcoin miners reserve saw a sharp increase back in May, but shortly after this increase, this cohort started selling as the asset’s price continued to show difficulties.
After the June rally, however, the indicator’s value had stabilized, meaning these investors were selling as much as they were adding to their holdings.
Over the past few weeks, this sideways trend has slowly turned into an uptrend as miners have gradually added to their reserves. Over the past 48 days, these chain validators have added a total of around 4,060 BTC to their holdings.
This amount is worth around $118 million at the current exchange rate, which is not a large amount given the size of the total miners’ reserve, but it is still a positive sign that the miners have been accumulating their holdings, despite the cryptocurrency’s price has shown some decline recently.
A significant portion of this recent miner accumulation comes from one mining pool, AntPool, as shown in the chart below.
It looks like the miners belonging to this pool have accumulated | Source: CryptoQuant
In the last 52 days, bitcoin mining pool AntPool added a total of about 1,020 BTC to its reserves, which is more than 25% of the total accumulation of all miners during that period.
The quant has also attached the data for the exchange flows (as well as the normal outflows/inflows) for this mining pool. There used to be some concern in the market that these miners might be selling while depositing them on exchanges, but as it turns out, this cohort was just transferring their coins back and forth from these platforms.
BTC price
At the time of writing, Bitcoin is trading around $29,100, up 1% over the past week.
BTC has been moving sideways lately | Source: BTCUSD on TradingView
Selected image from iStock.com, charts from TradingView.com, CryptoQuant.com
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