Key Points
- Bitcoin miner reserves have reached a multi-year low.
- Despite this, the value of these reserves remains high due to Bitcoin’s recent price appreciation.
Bitcoin miner reserves have seen a significant drop, reaching levels not seen since 2021. These reserves are the amount of Bitcoin held by miner wallets, indicating the amount of Bitcoin that miners have yet to sell. The data reveals that the current miner reserves are around 1.82 million Bitcoin (BTC) after beginning the year with approximately 1.87 million Bitcoins.
Impact of Miner Selling
When miners start selling Bitcoin, it can potentially lead to price depreciation due to an increase in supply, depending on the demand for the digital asset. However, charts show that miner reserves have been declining since October 2023, while Bitcoin’s price has increased by 150% in the same timeframe. Additionally, Bitcoin miner over-the-counter selling has seen a surge, with its largest daily volume since March.
Despite the multi-year low of miner reserves, their holdings measured in U.S. dollar value have maintained near an all-time high of approximately $135 billion. This is largely due to the recent price appreciation of Bitcoin.
Retail Investor Sentiment
On-chain metrics indicate that retail investors are currently showing fear or disinterest towards Bitcoin as its prices range between $65,000 to $66,000. However, patience is expected to be rewarded in the current market conditions. This is because the ongoing fear, uncertainty, and doubt (FUD) among traders, along with Bitcoin trader fatigue and whale accumulation, typically result in price bounces that reward patient investors.
Bitcoin’s price has seen a slight increase of around 0.6% in the past day, with its current trading price standing at $65,601. The entire cryptocurrency market capitalization has also seen a minor gain in the past 24 hours, increasing in value by 0.5% to now stand at $2.5 trillion.
