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Bitcoin Plunges Under $42,000 As Miners Sell Another 1,000 BTC

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Bitcoin has plunged below $42,000 as on-chain data shows the miners have continued their recent selloff, distributing another 1,000 BTC.

Bitcoin Miners Continue To Make Outflows From Their Reserve

As pointed out by analyst Ali in a post on X, miners have participated in some additional selling since Friday. The indicator of interest here is the “miner reserve,” which keeps track of the total amount of Bitcoin that miners are carrying in their wallets.

When the value of this metric goes up, it means that these chain validators are adding more coins to their supply currently. Such accumulation from this group can naturally positively impact the BTC price.

On the other hand, a decline in the indicator implies the miners are withdrawing a net amount of the cryptocurrency from their wallets right now. Since one of the main reasons why this cohort would transfer their coins out is for selling, this kind of trend may have bearish implications for the asset.

Now, here is a chart that shows the trend in the Bitcoin miner reserve over the past month:

The value of the metric appears to have been sliding down in recent days | Source: @ali_charts on X

As displayed in the above graph, the Bitcoin miner reserve started observing a sharp decline earlier this month when the cryptocurrency first broke past the $44,000 mark.

The miners had participated in a notable amount of selling around these highs, but it would appear that their appetite for distribution wasn’t satiated with this selloff alone as they have participated in some more selling during the last few days.

Since Friday, these chain validators have made net withdrawals of about 1,000 BTC. This stack of coins would be worth almost $42 million at the current asset price.

It’s not certain if these withdrawals have been made for selling purposes. Still, given the Go to Source to See Full Article
Author: Keshav Verma

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