The number of BTC stored by miners has reached a maximum in two years

Miners ‘ wallets hold 1.82 million BTC, which is the maximum for two years. Bitcoin continues to trade above $11,000, and miners are waiting for further growth to maximize profits.

According to tracked Glassnode
according to wallet addresses, miners store a total of more than 1.82 million BTC – the maximum number of coins over the past two years. Over the past year alone, the total assets of major miners have increased by about 2%, excluding possible growth in reserves of other BTC miners not tracked by Glassnode.

There are three possible reasons for this trend. First, the expectation of a further BTC rally. According to the former Director of the leading mining pool F2Pool Thomas Heller (Thomas Heller), the current mood of miners can be considered as a “bullish” signal. In his opinion, miners expect further price growth and therefore continue to store BTC.

However, not only miners prefer to store BTC on their addresses. The percentage of all BTC that have not moved for more than a year continues to grow after reaching
a four-year high in June.

Second, according to Harry Sudock, Vice President of GRIID strategy, miners order, receive, and launch new batches of ASIC miners. This process, which Sudok described as a” hardware cycle, ” can take up to six months depending on the price and size of the order. Ultimately, fewer coins must be sold to cover operating costs during this conversion period. In addition, with such a high price of BTC, it is necessary to sell a relatively small number of coins to pay for expenses.

Finally, the total number of coins held by miners has increased as new mining pools accumulate BTC reserves. In particular, a significant percentage of the recent overall growth of BTC stored by miners is associated with a little-known mining pool, which became active in March 2020. The BTC reserves of this pool are almost equal to the volume of coins stored by one of the oldest and largest pools – F2Pool. According to Glassnode, over the past few months, the pool increased the number of stored bitcoins to 9,373 BTC.

Last month, the analytical company Chainalysis reported that from April to June, miners constantly reduced sales of extracted BTC. This means that they accumulate cryptocurrency in order to sell it more expensive later.