Bitcoin miners now own more BTC than ever, according to Cryptoquant data. The analytics firm confirmed that miners’ BTC holdings surged in July. This comes amid a broader market rally seen in July.
According to CryptoQuant contributor and analyst Jan Wuestenfeld, miners now hold a total of 1,865,272 BTC (as of July 29). However, a slight drop was seen in early August, with total holdings reaching 1,864,842 BTC.
Nonetheless, miner earnings in July were still the lowest of the last year. Revenue bottomed out on July 13 at 13.928 million. Additionally, as previously reported by Watcher Guru, miner revenue fell 16.7% from June to July. Bitcoin miners generated $555 million in July compared to $667 million in June.
Source: Blockchain.com
Regardless, miners appear to have changed their overall outlook as many are starting to hold rather than sell.
Wüstenfeld stated in his report that
“Bitcoin miner reserves have fully caught up on the drains/sell-offs that took place after the June capitulation event. Bitcoin held in miner wallets is at a new all-time high.”
What about bitcoin hash rate and difficulty?
Wüstenfeld reports that the BTC hash rate is still on a downtrend. Additionally, unprofitable miners are shutting down their facilities after BTC’s price fell in mid-June. The hash rate peaked on June 12 at 231.428M TH/s.
Source: Blockchain.com
Additionally, the difficulty will see its first spike this week after being at the bottom for months. The network difficulty has steadily decreased since the end of May. This is most likely due to miners leaving the practice due to lack of profitability. Additionally, rising electricity costs for many miners are putting additional pressure on financial conditions.
Source: Blockchain.com
Nonetheless, Bitcoin miners have returned to their hold mode after weeks of uncertainty. Perhaps they are anticipating a faster market recovery than previously thought.
At press time, BTC is trading at $23,354.18, up 2.4% over the past 24 hours.
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