Bitcoin has once again surpassed the $60,000 mark, reflecting a broader market recovery. However, a key indicator suggests the possibility of another price decline.

Bitcoin surged by 2% over the past 24 hours and is currently trading at $60,800. Its daily trading volume has increased by 30%, reaching $34.8 billion. The market cap of Bitcoin now stands at approximately $1.2 trillion.

Recent data reveals that Bitcoin’s over-the-counter (OTC) desk balances for miners have increased by 71.2% over the past three months, rising from 215,000 to 368,000 BTC. This marks the first time since June 2022 that the BTC OTC desk balances have surpassed the 300,000 BTC threshold.

Bitcoin OTC Desk Balances Soar to Two-Year Peak

“Historically, increases in Bitcoin OTC desk balances have been associated with declines in Bitcoin prices.”

This trend typically occurs when miners opt to sell their holdings through OTC deals rather than on cryptocurrency exchanges. The last three major spikes in Bitcoin’s OTC desk balances for miners have resulted in significant selling pressure on Bitcoin and the broader crypto market.

According to an analyst known as @EgyHashX, “historically, increases in Bitcoin OTC desk balances have been associated with declines in Bitcoin prices.” Supporting this, data from Santiment shows that the Bitcoin supply held by miners has increased by roughly 20,000 BTC over the past month, rising from 2.17 million to 2.19 million coins.

In addition, data from market intelligence platforms indicates an increase in retail Bitcoin accumulation. Santiment’s data reveals that the asset’s exchange flow dropped from a net inflow of 6,783 BTC on August 17 to a net outflow of 1,006 BTC on August 22.

The chart also indicates that the number of coins being sent to self-custodial wallets is currently higher than the number of holders attempting to sell the asset.

For more updates on the latest trends and news in the cryptocurrency world, stay tuned to Global Crypto News.

Post Views: 7