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Over the past three weeks, around 700,000 BTC have been transferred to over-the-counter (OTC) desks that are commonly used by miners, according to CryptoQuant CEO Ki Young Ju.
Notably, activity has been observed following the approval of a spot Bitcoin exchange-traded fund (ETF).
700,000 BTC Flow to OTC Desks
The movement of such a significant amount of tokens suggests that miners might be preparing to sell or trade their BTC holdings. With spot Bitcoin ETFs approved, miners can seize the chance to utilize their significant BTC reserves to facilitate OTC trades for institutional investors.
700K $BTC has moved to OTC desks used by miners over the past three weeks following spot #Bitcoin ETF approval.https://t.co/beKpUVllNj pic.twitter.com/3F20yAxuX5
— Ki Young Ju (@ki_young_ju) February 22, 2024
This offers them the opportunity to earn substantial transaction fees and potentially secure favorable pricing conditions, especially before the much-anticipated Bitcoin halving slated for April this year.
It also indicates a shift in behavior as miners had paused offloading their tokens after a series of sell-offs as prices rebounded last month.
The latest peculiar miner behavior also comes amidst an increased number of whales entering the market. There has been a notable increase in the volume of UTXOs, ranging between 1,000 to 10,000 BTC, as per CryptoQuant’s data. These sums are more likely associated with whales or institutional investors rather than individual traders, especially since the recent approval of spot Bitcoin ETFs, contributing to a sharp rise.
Though not yet reaching the levels seen in the latter part of the 2021 bull market, it’s clear that a substantial number of whales and institutions are now entering the market.
Bitcoin Holding Behavior
Data revealed that large Bitcoin entities’ holdings have reached a new all-time high since July 2022.
Their holdings have surged from 3.694 million BTC in December 2022 to 3.964 million BTC, signaling a notable increase in demand for Bitcoin investments. This uptick in the holdings of entities with 1K to 10K Bitcoin often aligns with upward movements in market prices.
Currently, Bitcoin is trading a little below $52,000 and clocking around 30% gains over the past month.
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