TL;DR
- Miners’ Bitcoin reserves hit their lowest level since 2021.
- Miners OTC sales rise to their highest daily volume since March.
- The dollar value of miners reserves remains near an all-time high.
Miners Bitcoin (BTC) reserves have fallen to levels not seen since 2021, currently standing at approximately 1.82 million BTC, after starting the year with around 1.87 million BTC.
This decrease in reserves has remained constant since October 2023, while the price of Bitcoin has seen a 150% increase during the same period.
This trend reflects miners strategy of selling more Bitcoin to cover operating costs and maintain profitability, especially after the recent reduction in block rewards.
As miners reserves dwindle, over-the-counter (OTC) sales have reached their highest daily volume since late March.
These private sales allow miners to liquidate large amounts of Bitcoin without directly impacting the market, thus avoiding a potential price drop.
Despite this decrease in BTC reserves, their dollar value has remained near its all-time high, around $135 billion.
This is a consequence of the significant appreciation in the price of the crypto, which has offset the lower amount of BTC held by miners.
The behavior of miners in selling more Bitcoin is also influenced by the recent reduction in block rewards, known as halving.
The last halving, which occurred in April 2024, reduced rewards from 6.25 BTC to 3.125 BTC per mined block, affecting miners’ margins and forcing them to sell part of their reserves to maintain financial stability.
Bitcoin Market Outlook and Investor Behavior
The decline in miners reserves and increase in OTC sales reflect a strategic adaptation to current market conditions and economic pressures.
Although these sales increase the supply of BTC in the market, demand has been strong enough to keep the price of the cryptocurrency at high levels.
According to data from CryptoQuant, retail investors are exhibiting fearful or disinterested behavior, with Bitcoin fluctuating between $65,000 and $66,000.
This feeling of uncertainty and doubt (FUD) is unusual and usually precedes market bounces that reward patient investors.
Furthermore, the accumulation of BTC by large investors, known as whales, during these periods of capitulation suggests that these actors are taking advantage of the opportunity to buy at relatively low prices.
This dynamic is indicative of confidence in the long-term value of the crypto, despite short-term fluctuations.
The global cryptocurrency market has shown a slight gain in the last 24 hours, with the total capitalization reaching $2.5 trillion.
Bitcoin, for its part, is currently trading at $66,023.1, up 1.31% over the last day.
This behavior highlights Bitcoin’s resilience in the face of massive sell-offs by miners and the uncertain environment prevailing among retail investors.
