The supply overhang of bitcoins from miners has significantly decreased, according to data from CryptoQuant.
Experts noted that this group of market participants has recently contributed to the decline in prices.
The driver was the halving that took place in April, which rendered older mining devices economically inefficient. This change forced owners to sell off their bitcoin reserves in over-the-counter deals to cover expenses.
“The current market can be seen as in a process of ‘digesting’. The amount and number of bitcoins that miners are sending from their wallets has been rapidly decreasing recently,” the analysts wrote.
In other words, once the entire volume of these sales is absorbed, conditions for a rally to resume will be set, they added.
CryptoQuant forecasts this will occur in the third quarter.
Earlier, company specialists calculated that the largest bitcoin holders, including miners, have reduced their positions by $1.2 billion through OTC platforms over the past two weeks.
According to CryptoQuant, by June 20, the reserves of digital gold miners had decreased to 1.81 million BTC, falling below 2021 levels.
Adam Ortolf, Upstream Data’s client manager, previously described a “survival game” among bitcoin miners.