Even as the cryptocurrency market stares at upcoming Ethereum Merge, Bitcoin miners appear to have negative outlook in short term. The crypto ecosystem is anticipating a bullish momentum spurred by the much awaited Ethereum Merge. However, a section of traders do not expect Ethereum (ETH) price to jump nearly six months after the Merge.
The Ethereum Merge, which transitions the network from a proof of work mechanism to proof of stake consensus, is scheduled for September 15. As of last week, the Ethereum Merge progress was 96.55% complete, as per reports.
Bitcoin Miner Reserves Depleting
According to data from Crypto Quant, the miner reserves are on a downward curve in the recent times. This is not a good sign for the Bitcoin traders as it could trigger yet another price drop. The drop in reserves is seen particularly from August 8 and the net balance is currently negative. It remains to be seen if there would be any BTC price drop in near future. As of writing, Bitcoin price stands at $21,499.05, up nearly 0.09% in the last 24 hours, according to CoinMarketCap. This is compared with the price range of $30,000 maintained in early June.
“The percentage change in the positions of BTC miners indicates that miners have again moved to reduce their reserves since August 8. At least in the short term, this alignment is not something good!”
BTC Price Fall Imminent?
On previous occasions, a drop in Bitcoin miner reserves was always associated with a BTC price drop. “When miners’ balance was reduced, BTC tended to decline to free fall or range decline trading.” A closer look at the miner reserve flows shows a clear downtrend in the assets, spurring speculation of a potential price decline. More importantly, the overall BTC miner balance is now in the negative zone, which again reiterates predictions for a price fall.
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