Journalist
Posted:
- Bitcoin miners have started reducing their exposure to the king coin.
- BTC has been struggling to reach $50,000 for quite some time.
With Bitcoins [BTC] As the price faces significant resistance at the $44,000 price level, miners on the network have reduced their exposure towards the end of 2023.
An assessment of BTC’s Miner to Exchange Flow based on a 30-day moving average revealed a 60% increase in the past month.
Bitcoin miners moving?
The Miner to Exchange Flow metric measures the amount of BTC flowing from miners to exchanges. When this statistic increases, miners are selling more BTC than they are mining.
This is a sign that miners are bearish on the price of BTC and are primarily interested in selling their holdings.
Also, BTC’s Miner Reserve, which measures the number of coins in the portfolios of affiliated miners, confirmed the outflow of coins from miners’ portfolios within the reporting period.
According to data from the last 30 days, this statistic has decreased by 1% CryptoQuant.
Source: CryptoQuant
While miners reducing their exposure may raise alarm bells for some investors, more trouble could lie ahead.
According to CryptoQuant analyst Simona DA Spike in Bitcoin’s Unspent Transaction Outputs (UTXOs) Gains Brings the Risk of a Sharp Correction in 2024.
BTC UTXO is a benchmark that tracks the amount of cryptocurrency in a wallet address that remains untouched after a transaction is completed.
A UTXO is considered “profitable” if the current market price of BTC is higher than the price at which the UTXO was created.
AMBCrypto noted that in a previous report, BTC’s UTXO was over 88%. However, at the time of writing, the percentage of UTXOs making a profit among the total number of UTXOs has fallen slightly, to almost 87%.
Read Bitcoin’s [BTC] Price forecast 2023-24
This showed that many BTC holders continued to expect unrealized gains, but the possibility of a price correction due to a rise in this measure could diminish – a sign of positive news.
Source: CryptoQuant
The last time this metric was this close to such high levels was during the 2021 bull market, when 95% of all UTXOs made profits.