Analysts Call Miners' Reserve Dump a 'Strategic Move'
Bitcoin (BTC) bears are getting more ammunition, this time potentially from miners.
The miners of the largest cryptocurrency have started dumping their reserves. According to analytics firm CryptoQuant, this is a 'strategic move' as miners look to cover rising costs ahead of the halving.
According to CryptoQuant, miners' BTC reserves have significantly declined, while the number of BTC transfers to centralized exchanges has increased. This dynamic, the firm said, 'clearly shows strong selling pressure from the miner's side.'
In the run-up to a halving, miners typically sell their BTC to cover operational costs and prepare for future investments, as the competition in the sector intensifies with each block reward reduction.
