Data from CryptoQuant reveals that miner reserves, which represent the amount of bitcoin held in miner wallets awaiting sale, have dropped to approximately 1.82 million bitcoins, marking a decline from the beginning of the year when reserves stood at around 1.87 million bitcoins.
When miners begin selling their holdings, it increases the supply of bitcoin in the market, potentially exerting downward pressure on prices, depending on demand for the digital asset. However, CryptoQuant data indicates that miner reserves have been decreasing since October 2023, despite bitcoin’s price surging by 150% over the same period.
Additionally, CryptoQuant data shows that bitcoin miner over-the-counter selling has surged to its highest daily volume since March.
Despite miner reserves reaching multi-year lows, their dollar-denominated value has remained at an all-time high of about $135 billion, buoyed by bitcoin’s substantial price appreciation in recent months.
According to Santiment, on-chain metrics indicate that retail investors are largely cautious or uninterested in bitcoin as prices hover between $65,000 and $66,000. The blockchain intelligence platform suggests that patience will be rewarded during the current market conditions.
In a post on X.com, Santiment noted, “This heightened level of fear, uncertainty, and doubt (FUD) is unusual, with traders continuing to capitulate. Historically, bitcoin trader fatigue, coupled with whale accumulation, tends to lead to rebounds that reward patient investors.”
Bitcoin saw a modest 0.6% increase over the past day, trading at $65,601 as of 4:42 a.m. ET. The overall cryptocurrency market capitalization also experienced a slight uptick, rising by 0.5% to reach $2.5 trillion, according to data from CoinGecko.
