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Bitcoin Miner Reserves Reach Two-Year High â Price Decline Looms
The surge has brought miner reserves to a total of 368,000 Bitcoin.
Bitcoin reserves held by miners have surged to their highest level in over two years, raising concerns about a potential decline in Bitcoinâs price.
Historical patterns suggest that when miner reserves reach significant levels, it often precedes a downturn in the cryptocurrency market, according to a recent report by CryptoQuant.
Per the report, miner reserves on over-the-counter (OTC) desks have seen a massive increase, hitting a level not observed since June 2022.
Bitcoin Miner Reserves Reach 368,000 BTC
More specifically, the surge has brought miner reserves to a total of 368,000 Bitcoin, valued at approximately $22.36 billion.
âHistorically, increases in Bitcoin OTC desk balances have been associated with declines in Bitcoin prices,â the CryptoQuant report noted.
The 70% surge in miner OTC balances over the past three months suggests that miners might be preparing to sell large amounts of Bitcoin, which could exert downward pressure on the market.
The report draws parallels to previous instances where high miner reserves were followed by sharp price declines.
For example, in May 2018, when miner OTC balances exceeded 400,000 BTC, Bitcoinâs price was around $8,475.
By December of that year, the price had plummeted by 63% to $3,183. A similar pattern occurred in November 2021, when Bitcoin was trading at approximately $64,000 and miner reserves were near an all-time high of 500,000 BTC.
Within two months, the price had dropped by 45% to 35,058$
