Bitcoin Miners Are Holding Highest BTCs in History

Paigambar Mohan Raj
Source: Coingape

According to the data from Cryptoquant, Bitcoin miners now own more BTC than ever before. The analytics firm confirmed that BTC holdings of miners drastically increased in the month of July. This comes amid a broader market recovery that was witnessed in July.

According to CryptoQuant contributor and analyst Jan Wuestenfeld, miners now hold a total of 1,865,272 BTC, as of the 29th of July. However, the beginning of August did see a slight decline, with total holdings coming in at 1,864,842 BTC.

Nonetheless, miner revenue was still the lowest in July over the past one year. Revenues bottomed on the 13th of July at 13.928 million. Moreover, as previously reported by Watcher Guru, miner revenue dropped 16.7% from June to July. Bitcoin miners generated $555 million in the month of July, compared to June’s $667 million.

Source: Blockchain.com

Regardless, miners seem to have changed their overall outlook, as many begin to hold instead of selling.

Wuestenfeld stated in his report,

“Bitcoin miner reserves have fully recovered the outflows/sell-off that happened after the capitulation event in June. Bitcoin held in miner wallets is at a new all-time high.”

What about Bitcoin’s hash rate and difficulty?

Wuestenfeld reports that the BTC hash rate is still on a downward trajectory. Moreover, unprofitable miners are shutting down their rigs after BTC’s price dropped in mid-June. The hash rate peaked on the 12th of June, hitting 231.428m TH/s.

Source: Blockchain.com

Moreover, the difficulty is set to see its first increase this week after months of being on the lows. The network difficulty has been steadily decreasing since late May. This is most likely due to miners exiting the practice due to the lack of profitability. The added rising cost of electricity for many miners put additional pressure on financial terms.

Source: Blockchain.com

Nonetheless, Bitcoin miners are back in their holding mode after weeks of uncertainty. Perhaps they anticipate a quicker market recovery than what was previously thought.

At press time, BTC was trading at $23,354.18, up by 2.4% in the last 24 hours.