According to a report from “The Block,” blockchain data analytics company CryptoQuant’s data shows that Bitcoin miner reserves have reached 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 stood at approximately 1.87 million coins at the beginning of this year but have now dropped to around 1.82 million coins.
Source: CryptoQuant
When miners begin selling, the Bitcoin supply 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 declining since October 2023, while Bitcoin’s price has risen by 150% during the same period.
Additionally, according to CryptoQuant’s data, Bitcoin miners’ off-exchange transaction sell-off has recently reached the highest daily level since March.
Source: CryptoQuant
Despite reaching a multi-year low, miner reserves, the value of miners’ holdings in terms of USD, remain at a historical high of around $135 billion due to the recent increase in Bitcoin’s price.
Patience in the face of a market downturn
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 patience will be rewarded in the current market slump.
Santiment stated on the X platform:
Source: Santiment