Key Points
- Bitcoin miner sell pressure has significantly decreased, indicating a potential recovery for BTC.
- Increased demand for BTC from large players like MicroStrategy has led to a sharp drop in BTC inventory on exchanges.
Bitcoin Miner Sell Pressure Decreases
Bitcoin miner sell pressure has seen a considerable decrease following the Fed-induced pullback in December.
During the ‘Trump pump’ in November and December, the rally led to profit-taking from miners.
However, Charles Edwards, founder of Capriole Investment, noted that miner sell pressure has reset significantly as we entered the new year.
He considered the reading below 1 as a healthy level and a positive sign for Bitcoin.
Miners Offloaded Over 6K BTC in December
Interestingly, the intense sell-off of BTC by miners also marked the local top of $108K seen last month.
According to data from CryptoQuant, the total amount of BTC held by miner wallets, also known as the miner reserve, decreased from 1.813M to 1.807M.
This implies that miners offloaded over 6K BTC in December and have sold nearly 8K BTC from their reserves since late November.
At the time of writing, the Miner Reserve metric remained stable above the 1.80M BTC level, reinforcing a reduced sell pressure.
Demand for BTC Increases
In addition, there has been increased demand for BTC from large players like MicroStrategy, which has absorbed the recent BTC supply, including from miners.
This has led to a sharp drop in BTC inventory on exchanges, as noted by BTC analyst Willy Woo.
This combination of low-miner selling and increased demand from whales could aid the ongoing BTC recovery.
However, the FOMC Minutes scheduled for this week and US labor updates on Friday could introduce volatility on the price charts.
Despite this, BTC trader Cryp Nuevo expects the cryptocurrency to climb to the liquidity pool near $101K.
Whether the recovery will continue strongly above $100K remains to be seen.
However, after the US macro updates this week, the markets will shift focus to President-elect Donald Trump’s inauguration on 20 January.
