Miners’ Bitcoin (BTC) hoards decline to levels not seen since the Satoshi era

The supply of bitcoins from miners has been reduced to levels not seen in over 14 years.

This massive drop in mining reserves comes at a time when the broader cryptocurrency market is witnessing increased institutional interest and growing adoption.

Bitcoin Miner reserves hit 14-year low

According to the latest analysis by on-chain analytics firm CryptoQuant, the last time miner reserves were this low, bitcoin was still in its infancy. The creator of Bitcoin, 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 adopting BTC as a legitimate investment asset seemed like a distant dream.

The decrease in miner reserves can be attributed to several factors, one of them being the increase in the cost of mining operations and the demand to sell mined bitcoins at profitable prices.

As the difficulty of mining continues to increase, miners are incentivized to offload a portion of their holdings to maintain their operations and later reinvest in more efficient mining hardware.

“Companies and investors with enough foresight to understand the long-term implications of supply will do very well. Little by little…then all at once.”

‘Stubbornly Bullish’ Market

Bitcoin fell to $69,200 on Tuesday as investors took profits after the leading cryptocurrency briefly breached the $70,000 mark on Monday afternoon. Price movements among major cryptocurrencies were mixed.

According to a report published by cryptocurrency exchange Bitfinex on Monday, the decline in the value of bitcoin since March was likely driven by long-term holders selling their deposit. However, blockchain data indicates that this trend has stalled and investors have shifted back into accumulation mode.

A previous CryptoQuant report stated that 50% of the long-term bitcoin supply was “idle,” meaning there was no movement or change in holdings in tracked wallets. This lack of activity can be seen as a sign of strong long-term conviction, which may indicate further price rises.

Further validating the positive sentiment around bitcoin’s continued growth, Singapore-based QCP Capital said the market remains “stubbornly bullish” as it sees increased trading activity.

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