Bitcoin (BTC) miners now own more bitcoins than at any time since 2020 as the impact of the turmoil of the past months fades.
According to data from on-chain analytics firm CryptoQuant, miners’ BTC holdings increased significantly in July.
Miners keep piling SATs
In the latest sign of miners recovering from recent price weakness, the amount of bitcoin in their wallets reached a new multi-year high.
As noted by CryptoQuant contributor and analyst Jan Westenfeld, their combined balance totaled 1,865,272 BTC as of July 29. The beginning of August saw a slight decrease, with the total as of August 3 of 1,864,842 BTC.
Between July 6, when reserves reached a local low, and the July 29 peak, miners’ wallet balance increased by 0.37%, or 6,885 bitcoins.
Bitcoin miner reserve chart. Source: CryptoQuant
Miners struggled as the BTC/USD pair fell to its lowest level since December 2020, and subsequently recovered around 38% from the $17,600 level.
Their problems were most clearly visible in the network’s fundamentals, where the hash rate and difficulty decreased to reflect the low participation of miners.
As Cointelegraph reports, difficulty will see its first increase in months this week, while Westenfield notes that the hash rate has yet to see a noticeable return.
An overview of the basics of the Bitcoin network (screenshot). Source: BTC.com
Sales are exchanged for less than 1,000 BTC per day
Other scales also refer to the light at the end of the tunnel for miners. Last week, figures indicated that the miners’ “capitulation” phase could end as soon as August if price action continues to settle higher.
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Last week, figures indicated that the miners’ “capitulation” phase could end as soon as August if price action continues to settle higher.
According to CryptoQuant, since the June events, miners have sent a maximum of 927 BTC to exchanges in a single day.
Bitcoin miner exchange flows chart. Source: CryptoQuant
On August 2, the last full day for which data is available, inflows from miners to exchange wallets totaled just 359 bitcoin.
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