Bitcoin miners’ reserves depleted in high-volume OTC sales, what it means
There has been a significant change in the behavior of Bitcoin miners, with miner reserves falling to their lowest levels since 2010 and over-the-counter (OTC) sales activity rising significantly. At the beginning of the year, miner reserves were around 1.87 million BTC, but have now dropped to around 1.81 million BTC, a level not seen since 2010. This decline in reserves is noteworthy as it indicates that miners are more inclined to sell their holdings. Normally, this would lead to increased supply on the market and potential price depreciation, but that's not the case this year. Although miners are holding fewer BTC, the value of these reserves remains high, as prices have increased by almost 150% since October last year, bringing the total dollar value of miners’ holdings to near an all-time high at over $130 billion. Over-the-counter (OTC) sales by Bitcoin miners have reached daily peaks since March.
This miner activity occurs against the backdrop of significant price fluctuations in the market. The price of BTC has fallen by nearly 7% in the past day, from a high of $66,436 to approximately $65,269. This decline is consistent with the recent general trend of volatility in the crypto market. BTC may not see new highs until the current phase of miner capitulation and market fatigue resolves, which historically has typically preceded a bull run. Meanwhile, MicroStrategy, one of the major corporate backers of BTC, continues its Bitcoin accumulation strategy in this market environment. The company conducted its most recent capital raising by selling $800 million in convertible notes and has accumulated 11,931 Bitcoins. The average purchase price for this purchase was $65,883 per Bitcoin, bringing MicroStrategy’s total holdings to 226,331 Bitcoins, with a total purchase cost of approximately $8.33 billion, and an average purchase price of $36,798 per Bitcoin.
