Bitcoin Miners Hold Off On Selling As Their Reserves Reach 2021 High

Keshav Verma

Last Updated: June 11, 2024 8:42 am

3 mins read

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On-chain data shows Bitcoin miner reserve is growing as miners are accumulating BTC. The Puell Multiple confirms that miners don’t want to sell at the current price level.

Bitcoin Miner Reserves Grow To Highest Value For The Year

As pointed out by a CryptoQuant post, BTC miner reserve has been going up as miners seem to be waiting before selling.

There are two indicators of relevance here. The first is the “miner reserve,” which is a metric that simply measures the amount of Bitcoin that miners are currently holding in their wallets.

An uptrend of this indicator implies miners are accumulating their coins rather than selling. On the contrary, a downtrend would suggest miners might be dumping their Bitcoin.

The other indicator is the famous “Puell Multiple,” a metric that tells us how profitable miners would be compared to the last year if they sold all their mined coins today.

The Puell Multiple’s value is calculated by taking the ratio between the daily value of issued coins and the 365-day moving average of it.

Now, here is a chart that shows the trend in the value of these BTC indicators over the past few months:

Looks like the value of the miner reserve has been going up recently | Source: CryptoQuant

As you can see in the above graph, the BTC miner reserve seems to be increasing. This value of the indicator is the highest it has been for the year.

Also, the Puell Multiple’s value seems to be around 1.13. Such a low value indicates that miners aren’t finding it that profitable to sell at the current level. This explains the uptrend of the miner reserve as miners are currently holding on to their coins.

So, the Puell Multiple’s current value might mean that Bitcoin is undervalued at the moment. This trend could prove to be bullish for the coin’s price.

BTC Price

At the time of writing, Bitcoin’s price floats around $49.7k, down 12% in the last seven days. Over the past month, the crypto has lost 26% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price seems to have only moved sideways in the last few days | Source: BTCUSD on TradingView

Since the crash around a week ago, Bitcoin has mostly been in consolidation as the price of the coin looks to be stagnating. Currently, it’s unclear when the crypto might break out of this rangebound market or which direction it will escape in.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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