The depletion of miner-held Bitcoin (BTC) has reached its lowest point in over 14 years, with just 1.9 million BTC in reserves, down from 1.95 million at the start of the year. This decline marks the smallest amount of Bitcoin miners have held since February 2010, shortly after the cryptocurrency’s inception when it was valued at around $0.05 per token, compared to its current price of over $65,000.
One significant factor contributing to this decrease is the recent Bitcoin halving, which occurs approximately every four years and reduces the rewards miners receive for verifying transactions. The latest halving cut rewards from 6.25 BTC to 3.125 BTC per block, putting pressure on miners to sell a higher portion of their holdings to cover operational costs.
Despite the decrease in miner-held Bitcoin, the total value of their reserves remains close to all-time highs due to the price surge of the cryptocurrency in the past year. Additionally, while miner holdings have dropped, larger Bitcoin holders, known as whales, are accumulating more BTC. Wallets holding 10 BTC or more now account for 82% of the total supply, reaching a two-year high at 16.16 million BTC.
It’s important to note that tracking whale movements may not always provide reliable market insights, as their actions can be misinterpreted and may not accurately reflect broader market trends. Industry experts caution against relying solely on whale metrics for making investment decisions, as the data could be incomplete or lacking necessary context.
Looking ahead, Binance CEO Richard Teng is optimistic about Bitcoin’s future, predicting the cryptocurrency to surpass $80,000 by the end of 2024. He foresees even greater growth in 2025, driven by improving macroeconomic conditions that will create a more favorable environment for the entire crypto industry.
As the crypto market continues to evolve, staying informed and understanding the various factors influencing its dynamics is crucial for investors and industry professionals alike.
