Key Takeaways:
- Miners Bitcoin reserve currently sits at 2021’s highest level.
- Bitcoin price declines slightly over the past 24 hours.
NIGERIA (CoinChapter.com) — The number of Bitcoin (BTC) held by miners reached its best yearly levels earlier this week, according to data provided by CryptoQuant, a blockchain analytics firm.
The South Korea-based service reported that the Bitcoin producers, on the whole, held over 1.85 million BTC but fell slightly ahead of the weekly close. Nonetheless, the higher readings underscore miners’ intention to hold Bitcoin instead of selling it in the secondary markets.
A strong Bitcoin accumulation by miners also appeared as the Bitcoin price declined all across December. In turn, Bitcoin’s losses prompted other tokens in the crypto market to shed their value, including Ether (ETH), XRP, Binance Coin (BNB), etc.
The drop in Bitcoin price follows its unsuccessful attempt to reclaim $50,000. It retraced and even dipped to $47,500. Since last Saturday, the trend has persisted when it plummeted by $16,000 in hours. Although BTC initially recovered some ground as it neared $50,000 a day later, it has struggled since that day.
The bull’s most notable leg up resulted in reaching $52,000 on Tuesday, but the bears didn’t allow any more increases.
Just the opposite, they pushed the cryptocurrency south by a few thousand dollars, and BTC mainly remained below $50,000. In the past 24 hours, Bitcoin challenged the same coveted price line once more but to no avail.
Bitcoin miners reserve, bullish excuse for BTC
With miners’ Bitcoin holding reserve hitting new peaks in the year, analysts predict it is safe to describe the development as bullish for the number one cryptocurrency.
The BTC miner reserves are an indicator that shows how many coins miners are holding in their wallets. More the value of this metric, less the selling pressure for miners in the market.
Miners hodling BTC is termed bullish because the demand for Bitcoin has been increasing even at the institutional level, whereas miners, who are BTC suppliers, are holding, thereby regulating supply. The economic law of demand and supply, which explains that higher demand and scarcity in supply leads to a surge in price comes to play.
On the other hand, if there is some selling pressure among miners and they begin selling, the price can possibly immediately go down as miners generally sit on large piles of coins.
Altcoins reek of red
With Bitcoin prices declining, altcoins also have followed the same pattern. Ethereum, which spiked high trading at nearly $4,700 last Friday, dropped to $3,500 when the market-wide crash drove it down.
It bounced off rather well and even exceeded $4,400 days later, but the negative sentiment in the markets returned and pushed ETH to around $4,000 hours ago. As of now, ETH stands a little above that line.
The rest of the larger-cap altcoins are in a similar position. Binance Coin (-3%) and Ripple (-2%) seem to be taking the most recent retracement relatively well.
