Bitcoin (BTC) miners now hold more BTC than at any time in history, as the impact of the turbulence of the past few months wears off.
According to data from on-chain analytics firm CryptoQuant, miners’ BTC holdings increased sharply in July.
Miners keep stacking sats
In the latest sign that miners are recovering from recent price weakness, the amount of BTC in their wallets has hit a new all-time high.
As CryptoQuant contributor and analyst Jan Wuestenfeld points out, their combined balance was 1,865,272 BTC as of July 29.. A slight decline occurred in early August, with a total of 1,864,842 BTC as of August 3.
Between July 6, when reserves hit a local low, and a record high on July 29, miners’ wallet balances increased by 0.37%, or 6,885 BTC.
“Bitcoin miner reserves have fully recovered from the outflows/sells that occurred after the capitulation event in June,” Wuestenfeld commented in one of CryptoQuant’s “Quicktake” updates of the day.
“Bitcoin held in miner wallets is at a new all-time high.”
Wuestenfeld was referring to miner struggles as the BTC/USD pair fell to its lowest level since late 2020, subsequently recovering around 38% from a low of $17,600.
Its problems were clearly visible in the fundamentals of the network, with the hash rate and difficulty dropping to reflect the decline in miner participation.
As Cointelegraph reported, Difficulty will see its first increase in months this week, while Wuestenfeld notes that hashrate has yet to stage a notable comeback.
“Meanwhile, the hashrate remains in a downward trend, where unprofitable miners appear to be shutting down their rigs after the bitcoin price crashed in mid-June,” he added.
“However, this is as it should be and healthy in a free market. So, in my opinion, there is nothing to worry about.”
Exchange sales are back below 1,000 BTC daily
Other parameters also point to the light at the end of the tunnel for miners. In the past week, the figures suggested that miners’ “capitulation” phase could end as soon as August if price action continues to stabilize to the upside.
Last week, numbers suggested that miners’ “capitulation” phase could end as early as August if price action continues to stabilize to the upside.
According to CryptoQuant, Since the June events, miners have sent a maximum of 927 BTC to exchanges in one day.
On August 2, the last full day for which data is available, inflows from miners to exchange wallets totaled just 359 BTC.
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