Miners Bitcoin (BTC) Stash Dwindles to Levels Unseen Since Satoshi Era
The supply of bitcoin held by miners has dwindled to levels not seen in over 14 years.
This massive decline in miner reserves comes at a time when the broader cryptocurrency market is witnessing a surge in institutional interest and growing mainstream adoption.
Bitcoin Miner Reserves Hit 14-Year Low
According to on-chain analysis firm CryptoQuants latest analysis, the last time miner reserves were this low, bitcoin was still in its infancy. Bitcoin creator Satoshi Nakamoto was actively working on the project, and the concept of altcoins had yet to emerge.
It was a time when Barack Obama occupied the White House, and the idea of corporations like MicroStrategy embracing BTC as a legitimate investment asset seemed like a distant dream.
The diminishing miner reserves can be attributed to several factors, one of them being the increasing cost of mining operations and the demand for selling mined bitcoins at profitable prices.
As the mining difficulty continues to rise, miners are incentivized to offload a portion of their holdings to sustain their operations and subsequently reinvest in more efficient mining hardware.
Companies and investors with foresight enough to understand the long-term implications of supply will do extremely well. Slowly.. then all at once.
Stubbornly Bullish Market
Bitcoin dipped to $69,200 on Tuesday as investors took profits after the leading cryptocurrency briefly surpassed the $70,000 mark late Monday. Price movements across major cryptocurrencies were mixed.
According to a report released by crypto exchange Bitfinex on Monday, the decline in bitcoins value since March was likely driven by long-term holders selling their stash. However, blockchain data indicates that this trend has stalled, and investors have again switched to accumulation mode.
An earlier report by CryptoQuant stated that 50% of the long-term bitcoin supply was inactive, meaning there were no movements or changes in holdings across tracked wallets. This lack of activity can be considered as a sign of strong long-term conviction, which may signal further price increases.
Further validating the positive sentiment surrounding bitcoins continued growth, Singapore-based QCP Capital said that the market remains stubbornly bullish while observing an uptick in trading activity.
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