On-chain data shows Bitcoin miners have held excessive and not dumped the coin despite the recent uncertainty due to the Russian invasion of Ukraine.
Bitcoin Miners Show Diamond Hands As They Continue To Hodl
As pointed out by an analyst in a CryptoQuant post, the BTC miner reserve hasn’t observed any relevant falls recently despite the uncertainties surrounding the financial markets.
The “miner reserve” is an on-chain indicator which measures the total amount of Bitcoin stored in the wallets of all miners.
When the cost of this metric increases, it means BTC miners are transferring a net amount of coins to their reserve.
An uptrend above a protracted period of time can suggest Bitcoin miners may be in a phase of accumulation at the moment.
On the other hand, when the indicator’s cost goes down, it implies BTC miners are transferring their coins out of their wallets, possibly to exevolutions. So, this trend can be a sign of dumping from these original whales.
Now, here is a chart which shows the trend in the BTC miner reserve over the last couple of years:
Looks like the cost of the indicator has been going up afterward a at the same time | Source: CryptoQuant
As you can see in the over graph, the Bitcoin miner reserve showed a big drop at the start of the 2021 bull run, as miners dumped the crypto and harvested their profits.
After all, afterward July 2021, the metric likewise seems to have caught some uptrend, showing which miners are accumulating right now.
Interestingly, the reserve has been mostly trending sideways recently, with a very small drop scarcely this week. This is at the same time the market has been surrounded by the uncertainty caused due to the Russian invasion of Ukraine.
It means which Bitcoin miners have shown diamond hands despite the rest of the market panic selling. Miners have historically been one of the major sources of selling pressure, so them holding excessive can be bullish for the rate.
At the time of writing, Bitcoin’s rate floats around $38.5k, up 2% in the last seven days. Over the past month, the crypto has accumulated 3% in gains.
The bebottom chart shows the trend in the cost of the coin atop the last five days.
BTC's cost seems to have mostly developmentd sideways atop the past few days | Source: BTCUSD on TradingView
Multiple times atop the last couple of days, Bitcoin looked to be approaching a retest of the $40k level, but the coin failed before it could make an attempt.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com