Bitcoin BTC -0.79% miner reserves have plummeted to lows not seen since 2021, according to CryptoQuant data.

Miner reserves reveal the amount of bitcoin held by affiliated miner wallets, the value indicates the reserve that miners have yet to sell. Data shows that current miner reserves are around 1.82 million bitcoins after starting the year with approximately 1.87 million bitcoins.

Miner reserves have dropped to a multi-year low. Image: CryptoQuant.

When miners start selling, it increases supply and has the potential to cause price depreciation, depending on the demand for the digital asset. However, CryptoQuant charts show that miner reserves have been falling since October 2023, while the price of bitcoin has increased by 150% during the same period.

Also, according to CryptoQuant data, bitcoin miner over-the-counter selling has increased to its largest daily volume since March. 

Bitcoin miner OTC selling has also increased to its highest daily volume since late March, according to CryptoQuant data. Image: CryptoQuant.

Despite miner reserves hitting multi-year lows, their holdings measured in U.S. dollar value have remained around an all-time high of approximately $135 billion due to bitcoin's price appreciation in recent months.

Patience amid market doldrums

According to Santiment, on-chain metrics show retail investors are "mainly fearful or disinterested toward bitcoin as prices range between $65,000 to $66,000." The Blockchain intelligence platform added that patience will be rewarded amid the present market doldrums.

In an X.com post, Santiment said that "this extended level of FUD is rare, as traders continue to capitulate, and bitcoin trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient."

Bitcoin increased by around 0.6% in the past day and was changing hands for $65,601 at 4:42 a.m. ET., according to The Block's Bitcoin price page. The entire cryptocurrency market capitalization has experienced a slight gain in the past 24 hours, increasing in value by 0.5% to now stand at $2.5 trillion, according to CoinGecko data.