The hopes of miners of a recovery might have increased due to the increase in the price of the largest cryptocurrency by market capitalization. With BTC hovering around the $22,000 mark, the crypto market is trading in green with a change in sentiment.
Bitcoin’s price increased from $367 billion on July 1 to $414 billion today in the past seven days. In the meantime, there have been some intriguing developments regarding mining reserves recently.
In the previous two weeks, Bitcoin miner reserves have significantly decreased, according to Chart Today’s research of Crypto Quant. Despite a rise in the price of Bitcoin this week, this may be a sign of waning confidence in a price turnaround.
Data showed that there had been a loss of about 4,300 Bitcoin over the previous two weeks, possibly due to hedged positions against a decline in price.
Transferring assets to the derivatives market seems to be the general tendency among Bitcoin miners. This may be an indication that a further decline in the price of Bitcoin is imminent.
“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).”
Profits Decrease, Prices Increases
According to Glassnode, Bitcoin miners are transferring Bitcoin from their reserves to support this thesis. According to reports, mining profits for bitcoin have decreased by 56% since their peak. Additionally, the cost of mining Bitcoin climbed by 132%, making the situation for the community of miners much worse.
According to CoinGecko, the price of one bitcoin is currently $21,679, down 0.07 percent in the previous 24 hours. BTC’s price increased 11 percent in the last week, showing some signs of improvement. A 24-hour high for the price was $22,001.
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Read More:Miner Reserves Decline By 4300 BTC! What does This Mean For Bitcoin Price?
