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Bitcoin miner’s OTC balances are up 70% since June. They have reached a 2-year-high of 368,000 BTC.
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This is a trend that suggests miners are preparing to sell large quantities of Bitcoin.
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In the past, significant Bitcoin price changes have been correlated with spikes in OTC mining activity.
Bitcoin miners are flooding OTC desks with their holdings. Balances have risen 70% since June and reached a 2-year-high of 368,000 BTC at the end of August. This raises questions about potential market shifts.
Notably, institutional and large investors often use OTC desks for trade executions without having a significant impact on the market. Over the past few weeks, they have seen an influx of Bitcoins from miners. This suggests that miners are positioning themselves to sell large quantities of Bitcoin in anticipation of market turmoil or to take advantage of favorable pricing conditions.
Market participants have historically closely monitored spikes in OTC (over-the-counter) balances, as they can indicate impending volatility. The current surge is similar to previous instances when miners’ increased OTC activities coincided with notable Bitcoin prices movements.
The graph below shows this trend. Bitcoin’s price usually drops after the OTC Bitcoin balances of miners reach their peak values. In the most recent instance, Bitcoin’s price plummeted in the months following its all-time high value of $69K. This occurred during the cycle 2021/2022. The crash coincided with the peak of OTC balances.
This latest observation comes as Bitcoin’s price is relatively stable and has been hovering around $6K for the last few weeks. This raises the question of whether this increased OTC will lead to a significant correction in price or if miners merely hedge against future uncertainty.
Data shows that early Bitcoin miners made over half a million dollars in profits this year between $62K and $70K. On a larger scale, miners have dumped 30K BTC, worth over $2 billion, in June alone. This has significantly slowed down the bull run.
At the time of publication, Bitcoin was trading at $60.820, an increase of 2% over the last 24 hour.
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