- Bitcoin hit $70,000 in the previous trading session.
- Miners’ reserves continued to decline, but the price of BTC slowed it down.
Recently, there has been a slight increase in the number of outflows Bitcoin [BTC] Despite this increase, other market indicators suggest that a significant sell-off may not be imminent.
Bitcoin Miners’ Reserves Dwindle
A recent report by CryptoQuant highlighted a notable increase in Bitcoin Miners’ output. The output suggested that a significant amount of BTC was being transferred from miners’ wallets.
This trend is illustrated by a spike in the miner outflow indicator, which reached over 14,000 BTC on July 25. This is notably the highest level seen in over a month and the first time in July.
Although there was a decline after this peak, another substantial surge occurred on July 29, with outflows reaching over 9,800 BTC.
Source: CryptoQuant
Data on BTC miners’ reserves confirmed the trend of increasing capital outflows. At the beginning of July, miners’ reserves amounted to approximately 1.814 million BTC.
According to the latest data, this reserve has slightly decreased to around 1.813 million BTC.
Sales frenzy under control
Following the Bitcoin During the halving event, miners’ revenues saw a noticeable drop. This is because the halving reduced miners’ reward for their computational efforts.
There was also a change in the Puell Multiole indicator, used to assess the health of the mining industry and its potential future performance.
This is done by comparing the daily BTC issuance value (in USD) to the 365-day moving average of the daily issuance value.
A lower Puell multiple suggests that miners are earning less than the historical average. When the Puell value is around 0.5, it generally indicates that miners’ revenues are significantly reduced, indicating a potential bottoming out of the market.
Source: CryptoQuant
At press time, the Puell multiple was 0.9. While this is an increase, it still indicates relatively low revenues for miners compared to the average.
In such situations, miners might be reluctant to sell their Bitcoin holdings as prices might not be sufficiently compensatory, given their production costs.
BTC Fails to Reach $69,000
Bitcoin started the July 29 trading session strong, briefly reaching the $70,000 price range. However, by the end of the day, it had dropped more than 2% to close at around $66,771.
Read Bitcoin [BTC] Price forecast 2024-25
This economic slowdown could have affected the value of mining companies’ assets, potentially influencing their decisions regarding increased capital outflows.
Source: TradingView
According to AMBCrypto analysis, Bitcoin was trading at around $66,800 at press time, showing a modest recovery with an increase of less than 1%.