Bitcoin miners' reserves are falling due to profit-taking and the decline in BTC price to April 2021 lows

In a worrying trend, Bitcoin miners' reserves hit a low not seen since April 2021.

This coincides with active addresses on the network lagging while short-term Bitcoin holders sold some of their holdings, sending the value below $63,000.

According to CryptoQuant's latest analysis, there has been a significant decline in Bitcoin miner reserves, which have reached their lowest level since April 2021. Such a trend, which has been particularly pronounced since November, typically indicates increased selling pressure on the crypto asset.

Another “worrying trend” was that active addresses failed to keep up with rising Bitcoin prices this month. At the same time, the crypto analytics platform also observed an increase in profit-taking among short-term Bitcoin holders, mirroring patterns seen during previous market spikes.

This wave of profit realization could indicate a critical turning point for price action.

In 2024, retail investors flocked to Bitcoin ETFs in large numbers, sparking a surge that pushed prices above $74,000.

However, the subsequent downturn resulted in weekly losses of over 15% and hundreds of millions in liquidations, worrying investors.

Nonetheless, the upcoming influx of retail investors could coincide with the halving event and potentially trigger an even more significant rally for Bitcoin.

Over 93% of Bitcoins have already been mined, marking a significant milestone as the leading crypto asset awaits its fourth halving, scheduled in just a month.

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