Bitcoin Miners Cut OTC Holdings by 72%: What It Means for the Market

Bitcoin miners have significantly reduced their over-the-counter (OTC) holdings by nearly 72% since November 2021, according to CryptoQuant. This decline from 500,000 BTC to 139,700 BTC indicates fewer coins are available for large private transactions.

The shrinking OTC supply has tightened the market structure, leading to lower visible selling pressure on Bitcoin. Despite this, the price of Bitcoin has advanced, suggesting stronger demand against a decreasing pool of available supply.

However, if institutions and whales continue accumulating under these conditions, tighter liquidity could amplify Bitcoin's upside sensitivity in the coming quarters.

The trend of declining OTC inventories is complemented by coordinated withdrawals from centralized exchanges. On July 20th, Bitcoin recorded $686 million in Exchange Netflows, with Binance leading at $570 million, marking its largest withdrawal since April.