In a worrying trend, Bitcoin miners’ reserves hit a low not seen since April 2021.
This coincides with lagging active addresses in the network while Bitcoin short-term holders sold off some of their holdings, dragging its value below $63,000.
According to CryptoQuant’s latest analysis, there is a significant decline in the Bitcoin miners’ reserve, reaching its lowest level since April 2021. Such a trend, which has been particularly pronounced since November, typically depicts an increased selling pressure on the crypto asset.
Another “worrying trend” was that active addresses failed to keep up with rising Bitcoin prices this month. At the same time, the crypto analysis platform also observed an increase in profit-taking among short-term holders of Bitcoin, mirroring patterns witnessed during previous market peaks.
This wave of profit realization may indicate a critical turning point for its price trajectory.
2024 saw retail investors flocking to spot Bitcoin ETFs in large numbers, which sparked a surge that pushed prices above $74,000.
However, the subsequent downturn led to over 15% weekly losses and hundreds of millions in liquidation, leaving investors concerned.
Nonetheless, the upcoming influx of retail investors could align with the halving event, potentially triggering an even more substantial rally for Bitcoin.
Over 93% of Bitcoins have already been mined, marking a significant milestone as the leading crypto asset anticipates its fourth halving, which is scheduled just a month from now.
The post Bitcoin Miners’ Reserves Plummet to April 2021 Lows Amid Profit-Taking and BTC Price Decline appeared first on CryptoPotato.
