According to a report by “The Block,” blockchain data analytics company CryptoQuant’s data shows that Bitcoin miner reserves have dropped to a new low since 2021.
Miner reserves reveal the amount of Bitcoin held in wallets associated with miners, indicating the reserves that miners have yet to sell. The data shows that Bitcoin miner reserves totaled about 1.87 million coins at the beginning of this year but have now dropped to approximately 1.82 million coins.
Source: CryptoQuant
When miners start selling, the supply of Bitcoin will increase, potentially leading to a price decline depending on the demand for the digital asset. However, CryptoQuant’s chart shows that miner reserves have been decreasing since October 2023, while the Bitcoin price has increased by 150% during the same period.
Additionally, according to CryptoQuant’s data, Bitcoin miners’ off-exchange transaction sell-off volume has recently reached the highest daily level since March.
Source: CryptoQuant
Despite reaching a multi-year low, miner reserves, the value of miner-held coins in USD terms, still maintain a historical high of about $135 billion due to the recent price increase of Bitcoin.
Remaining Patient in a Sluggish Market
According to blockchain analytics platform Santiment, on-chain indicators suggest that retail investors are “primarily fearful or uninterested in Bitcoin due to the price fluctuating between $65,000 and $66,000.” The platform adds that in the current market slump, patience will be rewarded.
Santiment states on the X platform:
Source: Santiment
