BTC reserves of miners decline as Bitcoin reaches new highs
Miners are withdrawing bitcoins
Miners have decided to capitalize on Bitcoin's price surge and are now actively withdrawing BTC from their wallets. On a single day alone, they moved approximately $2.2 billion worth of bitcoin.
According to Cointelegraph, on November 12, mining pools transferred around 25,367 bitcoins, valued at approximately $2.2 billion, from their wallets.
The surge in Bitcoin’s price, reaching $88,000 at the time, influenced miners' activity.
Where and why miners are withdrawing Bitcoins
Typically, when Bitcoin’s price is high, miners aim to sell a portion of their holdings to prepare for the upcoming halving (the halving of block rewards) or to brace for the next bear trend, which could see the cryptocurrency’s value significantly decline.
Despite the active withdrawals, Bitcoin in this current cycle still shows strong potential for further growth, as both hash rate and mining difficulty continue to increase.
It’s worth noting that a decrease in BTC reserves of miners doesn’t necessarily mean they’re selling their assets. They may be transferring BTC to exchanges for future sale, or it could simply involve internal transfers to new addresses.
Bitcoin surpassed the $90,000 mark as an inflation report fueled investor optimism
