The reserves of Bitcoin miners have dwindled to 1.81 million BTC, falling below 2021 levels, according to CryptoQuant data.
The reduction in the reserves of the first cryptocurrency’s miners increases the asset’s supply, potentially exerting negative pressure on its price. However, the volume of bitcoins in miners’ wallets has been declining since October 2023, while the price of digital gold has risen by approximately 150% since then.
Despite the sale of bitcoins, market participants’ reserves in dollar terms remain at a record high—around $130 billion.
Another CryptoQuant chart shows that miners’ over-the-counter (OTC) sales have reached the highest daily volume since March 2024.
According to analysts at Santiment, investors are “mainly fearful and not interested in Bitcoin” as prices fluctuate between $65,000 and $66,000.
? The crowd is mainly fearful or disinterested toward Bitcoin as prices range between $65K to $66K. This extended level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient. pic.twitter.com/WMy3lbdjEB
— Santiment (@santimentfeed) June 20, 2024
“Such an elevated level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient,” the experts wrote.
At the time of writing, digital gold is trading at $66,100, having recovered by 1.5% over the past day.
Earlier, CryptoQuant analysts predicted a drop in Bitcoin to $60,000 if the $65,800 level is breached. According to experts, traders closing arbitrage deals have increased pressure on the asset’s rate.
Previously, Glassnode indicated that a decisive price movement in either direction is necessary to exit range-bound trading.
Bernstein has forecast Bitcoin to reach $200,000 by the end of 2025, driven by expectations of “unprecedented demand for spot exchange-traded funds.”