The increase in the price of the largest cryptocurrency by market capitalization may increase hopes of a recovery for miners. With BTC hovering around $22,000, the crypto market is trading in the green and sentiment has turned.
In the past seven days, the value of bitcoin has risen from $367 billion on July 1 to $414 billion today. Meanwhile, recently there have been some interesting developments regarding mining reserves.
According to research by Chart Today’s Crypto Quant, over the past two weeks, bitcoin miner reserves have decreased significantly. Despite the increase in the price of bitcoin this week, it could be a sign of a lack of confidence in the price movement.
Data shows that around 4,300 bitcoins have been lost over the past two weeks, possibly due to hedge positions against price drops.
Moving assets to the derivatives market seems to be a general trend among bitcoin miners. This could be a sign that the price of bitcoin is about to fall further.
“Miners in general continue to make transfers to the derivatives market. Miners have lost 4,300 BTC in reserves over the past two weeks. Presumably these transfers to the derivatives market are a hedge against future downsides, not an intention to sell From (in my opinion).
Profits fall, prices go up
According to Glassnode, bitcoin miners are moving bitcoin from their reserves to support this thesis. According to reports, mining profits of bitcoin have decreased by 56% since its peak. Additionally, the cost of bitcoin mining increased by 132%, making the situation for the miners’ community even worse.
According to CoinGecko, one bitcoin is currently priced at $21,679, down 0.07 percent over the past 24 hours. Showing some signs of correction, the BTC price is up 11% in the past week. The 24-hour high for the price was $22,001.