Last data from CryptoQuant highlighted a significant change in the behavior of Bitcoin Miners, with miners’ reserves falling to their lowest levels since 2010 while over-the-counter (OTC) selling activity increased to higher levels.
What does this mean for BTC
At the beginning of the year, miners’ reserves were around 1.87 million BTC, but have not currently increased to around 1.81 million BTC, a level not seen since 2010. This drop in reserves is noticeable because it indicates a greater willingness of miners to sell off their holdings .
Usually, this can lead to increased supply in the market and potential price depreciation, but this year the scenario was different.
Despite the decline in BTC held by miners, the value of these reserves remains high, supported by a nearly 150% price boost since October last year, keeping the total dollar value of mining holdings close to a record high of over $130 billion.
Additionally, data from CryptoQuant shows that over-the-counter (OTC) sales of Bitcoin miners are at their highest daily level since March.
Bitcoin in the spotlight
This mining activity is driven by broader market movements that are characterized by significant price fluctuations. The price of BTC has dropped almost 7% over the past day, falling from a high of $66,436 to around $65,269.
The decline is consistent with the general trend of volatility that has characterized the cryptocurrency market recently. Analyst Willy Woo commented on the situation, indicating that BTC may not reach modern highs until the current phase of miners capitulation and market boredom, which historically precedes significant growth, passes.
I know it sucks, but BTC won’t break all-time highs until there’s more pain and boredom.
On the other hand, the miners capitulate, and when it does end, it almost always ends in a huge rally.
Look for compressions on this ribbon. Buy and grow in these regions. pic.twitter.com/MkPKk3AF47
— Willy Woo (@woonomic) June 19, 2024
Meanwhile, MicroStrategy, BTC’s main corporate sponsor, continues its strategy collection Bitcoin in these market conditions. After recently raising money through the sale of $800 million in convertible bonds, the company added 11,931 bitcoins to its holdings.
This acquisition, conducted at an average price of $65,883 per bitcoin, increases MicroStrategy’s total holdings to 226,331 bitcoins, acquired at a total cost of approximately $8.33 billion, reflecting an average price of $36,798 per bitcoin.
MicroStrategy acquired an additional 11,931 BTC for ~$786.0 million using convertible bond proceeds and excess cash for ~$65,883 per unit #bitcoin. From 20/06/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33 billion at an average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON
—Michael Saylor
(@saylor) June 20, 2024
Featured image created with DALL-E, chart from TradingView
