Bitcoin’s place in the global financial system is changing. Miners are increasingly holding their Bitcoins despite a decline in revenue, and India’s ruling government has proposed a pilot program for a Bitcoin sovereign reserve to improve economic resilience.
Bitcoin miners ignore market logic and hoard BTC despite declining revenue and record prices
Bitcoin miners increased their BTC reserves despite the challenging environment of profitability and Bitcoin’s trading at its highest levels. According to a new report by the on-chain analysis firm CryptoQuant, bitcoin miners collectively increased their BTC holdings since April 2025, bringing them to a total of 65,000 BTC. This is their highest level since Nov 2024.
The accumulation of bitcoins has been occurring against a backdrop of increasing operational stress. As of June 22, daily revenues for bitcoin miners had fallen to $34 million, a 2-month low. This is largely because of falling transaction fees as well as a small dip in BTC price after a recent high.
The selling of miner’s has decreased dramatically despite these pressures. The outflow of miner wallets has dropped dramatically. From 23,000 BTC a day, in February 2025 to just 6,000 BTC today, this trend suggests that miners prioritize long-term values over short-term profits.
Bitcoin Miner Outflows Total (Source: CryptoQuant
The Miners are Subjected to “Extremely Low Payment”
CryptoQuant’s Weekly Report, published on April 15, describes Bitcoin miner as “extremely unpaid.” The report notes that this is the worst income situation in the last year. The decline in revenue for Bitcoin miners comes only months after the April halving, when the block subsidy was reduced from 6,25 BTC down to 3,125 BTC. This effectively cut the amount of Bitcoin per block earned by half.
Bitcoin Miner Loss/Profit Sustainability (Source: cryptoQuant
Hashrate, the measurement of computing power in the Bitcoin network, has fallen by 3.5% over the past 10 days. This is the biggest drop since July 2024. It is likely that marginal mining operations are under increased pressure, especially those located in areas with high electricity costs and aging equipment.
Many miners seem to have weathered the storm. CryptoQuant credits this resilience to a 48% average operating margin, which allows more powerful, larger mining companies to stockpile BTC instead of liquidating them to cover costs.
The most noticeable trend may be the almost complete cessation in sales by so-called “Satoshi era” miners – individuals or companies who mined Bitcoin during its early days between 2009 and 2011, likely. They are often called market-moving “whales” due to the large BTC amounts they hold and their tendency to buy into gains during bull markets.
Bitcoin Satoshi-era Miner netflows (Source: CryptoQuant)
But 2025 seems to be a year of change. CryptoQuant reports that Satoshi miners sold only 150 BTC last year, as opposed to almost 10,000 BTC back in 2024. This is a shocking 98.5% drop in volume even though BTC/USD has continued to reach new records.
In the past, coins moving from dormant wallets have signaled a market peak and caused panic among investors. These wallets are not active, which could indicate either newfound patience or an increased conviction that Bitcoin’s bull market is still far from being over.
What is the difference between a capitulation and a conviction?
The collective refusal to buy, despite dwindling revenues, could be a positive signal for Bitcoin price. The widely followed “Hash Ribbons”, which tracks miner surrender phases, flashed the classic “buy signal” earlier in June. This metric is historically accurate in identifying bottoms because miner capitulation usually precedes recoveries, when weaker operators leave and long-term investors double down.
The fact that BTC is currently just a couple of percentage points off its high could indicate to miners that the market has a lot more upside. The miners’ unwillingness to make a sale at the peak could be a sign that they have a much longer term price outlook than the current most optimistic predictions in the crypto world.
It is important to understand the implications that miners becoming net accumulators have. A decline in mining sales, as one of the only consistent sellers in the Bitcoin eco-system, reduces BTC supply on the market. This, combined with the continued inflows of institutional investors and increased adoption of Bitcoin spot ETFs creates an imbalance between supply and demand that can act as a catalyst to further price appreciation.
The alignment of miner behavior and long-term investment behaviour reinforces the narrative that Bitcoin is maturing. The days of miners selling their Bitcoins at the end of each cycle have passed. The trend now is to focus on strategic reserves and capital discipline, a reflection of an industry that has become more sophisticated.
India’s ruling party spokesperson urges the piloting of Bitcoin Reserve to boost economic resilience
Pradeep Bhandari is the spokesperson of India’s Bharatiya Janata Party, which governs. He has advocated a program that would establish a Bitcoin sovereign reserve.
In an opinion piece for India Today the proposal positions the initiative to be a practical step towards strengthening the national economy and accepting the increasing legitimacy of digital assets in the global arena.
Bhandari pointed to the United States strategic move to acquire Bitcoin, and Bhutan’s government led crypto mining initiative as signs that traditional finance was undergoing a cryptocurrency transformation. In the article, he stressed that this is not a reckless move. It’s a calculated move towards embracing the legitimacy of digital assets.
Bitcoin as a strategic asset in the global context
Bhandari’s request for a Bitcoin Reserve Pilot is not made alone. Recently, the United States announced plans to acquire Bitcoins at a budget-neutral price in order to boost its strategic reserves. Bitcoin is now an officially recognized reserve asset in at least three US States. Bhutan is using its surplus renewable energy to run state-backed Bitcoin mines.
This development reflects a wider shift in the way nations perceive crypto – not merely speculative but also as an instrument of strategic utility with macroeconomic and geopolitical implications.
Bhandari believes that India has a unique position to be at the forefront of this shift. He cites India’s growing renewable energy industry. India’s vast solar, hydroelectric, and wind power potential could be used to create a state-managed Bitcoin Reserve without harming its environment goals.
The minister said that a pilot program would align India’s digital ambitions and also encourage innovation, attracting institutional interest. An Indian government Bitcoin reserve would give confidence to domestic as well as international investors and position India at the forefront of responsible crypto infrastructure adoption.
India’s Crypto Conundrum: Taxed, but unregulated
India’s regulatory position on cryptocurrency remains unclear at the moment. Digital assets like Bitcoin (BTC), Ethereum (ETH), and other digital currencies are subject to a capital gains tax of 30%, but there is currently no regulatory framework that governs their trading, use, or custody.
Profits from the sale of virtual digital assets are subject to a 30% tax rate under Section 115BBH. Losses and other expenses are not allowed to be deducted from gains. A 1% tax is deducted from all cryptocurrency transactions above Rs10,000 ($115), which further reduces liquidity and market activity.
The duality of taxation and regulation has stifled both innovation and retail participation.
Bhandari referred to India’s leadership in 2023, when it held the G20 presidency. India led a crypto-policy working group with IMF. He warned, however, that India is not moving as fast as the rest of the world.
Bhandari stated that while recommendations would take time, countries like Russia, China and Brazil as well as other G20 led nations aren’t waiting for consensus to stop their crypto work.
India could fall behind in the race if they do not act quickly, he said. The pilot of a sovereign Bitcoin reserve could be used as a policy acceleration and signaling device to the global markets.
The Path to Success is Transparent and Strategic
Bhandari believes that the best way to embrace this opportunity would be the implementation of a Bitcoin Reserve Pilot Program, along with well-defined regulations. Bhandari said that such a system should be transparent and investor-friendly. It also needs to promote innovation, while maintaining consumer protection.
The initiative, he believes, could serve as a test ground for wider digital asset strategies. These include public-private partnerships to build crypto infrastructure and government-backed mines powered by renewable energy.
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