Bitcoin Supply Tightens as Miners Cut OTC Holdings by 72%

Bitcoin miners have significantly reduced their over-the-counter (OTC) holdings, resulting in fewer coins available for large private transactions. According to CryptoQuant data, miner-linked OTC balances have dropped by nearly 72% since November 2021, from 500,000 BTC to 139,700 BTC.

This decline in OTC supply has led to tighter liquidity, suggesting lower visible selling pressure on Bitcoin. Meanwhile, the price of Bitcoin has advanced despite declining OTC inventories, indicating stronger demand against a shrinking pool of available supply.

The tightening supply picture extends beyond miner-linked OTC desks and is now visible across centralized exchanges. On July 20th, Bitcoin recorded $686 million in Exchange Netflows, with Binance leading the way with $570 million in net outflows, marking its largest withdrawal since April.