Even as Bitcoin price continues to hover around $22,000 mark, miners appear to be hopeful of a quick turnaround in fortunes. In the last seven days, Bitcoin price grew from $367 billion on July 1 to $414 billion now. Meanwhile, there are some interesting development with respect to miner reserve in the recent past.
Bitcoin Miner Reserves Decreasing?
According to analysis by Chart Today on Crypto Quant, there is significant decrease in Bitcoin miner reserves in the past two weeks. This could be an indication of dwindling trust in a price reversal despite an upward curve in Bitcoin price this week. Data revealed that there was a decrease by around 4,300 Bitcoin in the last two weeks, hinting at hedged positions against price fall.
The overall trend in Bitcoin mining community appears to be around transferring assets to the derivatives market. This is perhaps a clear signal towards anticipation of a further drop in Bitcoin price.
“Miners in general continue to make transfers to the derivatives market. The miners’ reserve has decreased in the last two weeks by 4300 BTC. Possibly these transfers to the derivatives market are hedges against future falls and not with the intention of selling (in my opinion).”
Falling Bitcoin Mining Revenues
Supporting this analysis is Glassnode’s findings that Bitcoin miners are distributing Bitcoin from their reserves. The revenues from Bitcoin mining are said to be down 56% since the all time highs.
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“With Bitcoin miner revenues down 56% since the all time high, we are seeing miners distributing $BTC from their reserves.”
Also, the cost of producing Bitcoin increased by 132%, making things even worse for the miner community.
As of writing, Bitcoin price stands at $21,528, up 0.63% in the last 24 hours, according to CoinMarketCap. BTC’s price picked up a bit over the past one week, with an increase of 11.85%. The price reached a 24 hour high of $22,010.
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