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With the price of Bitcoin stabilizing around $52,000, miners have started selling again.
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Bitcoin Miner's Reserve Depletion
Over the past 10 days, Bitcoin miners have profited from the increase in the price of the leading cryptocurrency, according to data from the crypto analytics portal CryptoQuant.
With a 2.21% increase in the last day, the price of Bitcoin has risen from roughly $45,000 to $51,904.95 in less than two weeks. Miner's reserve is steadily declining, indicating that these organizations may be dispersing their assets.
About 6,329 Bitcoins have been sold between February 8—the day the miner's reserve peaked—and February 18. The sold hoard has a market value of over $300 million based on the current coin. The reserve is steadily running out as a result of the prolonged selling trend.
Miners offloaded 10,600 Bitcoin units in January, with an estimated value of $455.8 million. The action, which affected miner profitability, was described as a dynamic market reaction to the abrupt decline in the BTC hashrate at the moment.
The Bitcoin miner reserve then went through a two-day severe depletion in February. The sale of over $600 million worth of Bitcoin resulted in the reserve dropping to its lowest level since July 2021. Although some miners may be liquidating their holdings to pay for their mining expenses, market traders don't think these actions are healthy.
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Effects of Halving and the Spot BTC ETF
The current retreat by Bitcoin miners is probably going to cause the price of the coin to fall since investors might become uneasy about what these network validators are thinking about Bitcoin. But, a variety of reasons, such as the new Bitcoin ETF and the impending halving event, could potentially keep the price of bitcoin rising in the current bullish direction.
A number of market watchers and specialists are already quite bullish about how high Bitcoin's price will rise both before and after the halving event. Prominent cryptocurrency expert Bitcoin HODL on X forecasted that the equilibrium price of Bitcoin would be $301,709 prior to the halving and $603,418 following the halving.
According to this estimate, miners' actions might cause a brief decline in the price of Bitcoin, but they might not have a significant long-term impact on the currency.