BITCOIN MINERS’ RESERVES DROP TO 2021 LOWS AMID SALES, PRICE FALL 

The recent uptick in Bitcoin’s value triggered selling activities among miners, resulting in their reserves dwindling to levels last observed in April 2021. This decline coincides with a noticeable drop in active addresses on the network and a sell-off by short-term Bitcoin holders, causing the cryptocurrency’s price to fall below the $63,000 mark.

CryptoQuant’s analysis highlights a stark decrease in Bitcoin miners’ reserves, hitting a low not seen since April 2021. This trend, becoming more apparent since November, suggests growing selling pressure on Bitcoin.

Additionally, there was a failure in the number of active addresses to match the rise in Bitcoin prices this month. Concurrently, CryptoQuant noted a surge in profit-taking by short-term Bitcoin investors, a scenario similar to those seen at previous market highs, potentially signaling a pivotal moment for Bitcoin’s price direction.

The year 2024 witnessed a significant influx of retail investors into spot Bitcoin ETFs, contributing to a price surge above $74,000. Yet, this increase was shortly followed by a sharp decline, resulting in over 15% weekly losses and massive liquidations, stirring anxiety among investors.

However, the anticipated entry of more retail investors, coinciding with Bitcoin’s forthcoming halving event, might set the stage for an even more remarkable rally.

As over 93% of Bitcoin has been mined, the crypto community is gearing up for its fourth halving, expected to occur in just a month, marking a crucial phase for the premier digital currency.

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