tl;dr
Bitcoin miners have been depositing significant amounts of Bitcoin to over-the-counter (OTC) desks in recent months, as indicated by on-chain data. This trend, historically seen as bearish, suggests a potential impact on the BTC price. The balances of these probable miner "OTC desks" have surged by ...
Bitcoin miners have been heavily depositing Bitcoin to over-the-counter (OTC) desks in recent months, signaling a potentially bearish trend for BTC price. The balances of these miner OTC desks surged by over 70% in the past three months, reaching a two-year peak. Historically, a similar increase in miner OTC desk balance has led to a decline in BTC price, highlighting the potential impact of this trend.
The surge in miner deposits to OTC desks may be influenced by the fourth Halving event and market pressure. Bitcoin is currently trading around $61,300, reflecting a more than 4% increase over the last seven days.
On-chain data reveals that Bitcoin miners have been sending coins to OTC desks over the past three months. OTC desks, which facilitate discreet direct transactions between individuals or institutions, are challenging to track compared to centralized exchanges. CryptoQuant identified specific addresses associated with OTC desks frequently used by miners, indicating a significant increase in activity.
According to CryptoQuant's on-chain data, the balance of these probable miner OTC desks saw a sharp increase in recent months, rising from 215,000 BTC in June to 368,000 BTC in August—an increase of 153,000 BTC. This surge in miner deposits to OTC desks historically precedes a decline in BTC price, possibly driven by the impact of the fourth Halving event on miners' income from block subsidies.
The bearish effect of increased miner deposits to OTC desks on BTC price is a trend to watch, especially given Bitcoin's current trading price of around $61,300, showing a more than 4% increase over the past week. As the market continues to evolve, the potential implications of this miner behavior on cryptocurrency prices merit close observation.