New data reveals that the reserves of Bitcoin miners have dropped to levels not seen since 2021, with approximately 1.82 million bitcoins currently held. This decline in reserves coincides with an increase in the daily volume of BTC miner over-the-counter sales, reaching its highest point since March. The value of the reserve that miners have yet to sell indicates the amount of bitcoin held in their wallets, and this decreasing quantity suggests a decrease in miner reserves.
The correlation between miner selling and the price of bitcoin is worth noting. When miners begin to sell their bitcoin, the increased supply can lead to a decrease in price depending on the demand for the digital asset. Despite this, the price of bitcoin has actually risen by 150% since October 2023, as reported by CryptoQuant data. However, it is important to consider that the decline in miner reserves has occurred simultaneously with this price increase.
Interestingly, the recent surge in bitcoin’s price has resulted in miner holdings measured in US dollars remaining at an all-time high of over $135 billion, despite the decline in reserves. This suggests that the increase in price has compensated for the decrease in quantity held by miners.
As the price of bitcoin hovers around $66,000, it is worth noting that on-chain metrics indicate that retail investors are currently apprehensive or uninterested in the cryptocurrency, according to Santiment. However, the blockchain intelligence platform suggests that patience will be rewarded, even in the midst of a market downturn. Santiment emphasizes that prolonged levels of fear, uncertainty, and doubt (FUD) are uncommon, and typically result in fatigue among traders and whale accumulation, leading to rebounds that benefit those who remain patient.
In other news, the Ethereum market has experienced a $2 billion drop in open interest (OI) amid a surge in price. This development highlights the ongoing volatility and fluctuations in the cryptocurrency market.
Overall, these recent developments in the Bitcoin and Ethereum markets underscore the dynamic nature of the cryptocurrency industry, with fluctuations in reserves, selling volumes, and investor sentiment all playing a role in shaping market trends.