Bitcoin’s miner reserve increased steadily between July 2 and July 22, reflecting the coin’s accumulation, which reached a new all-time high of $122,054 on July 14.
At that time, miners were holding onto their rewards in anticipation of higher prices, confident in the coin’s bullish momentum.
However, since reaching this peak, BTC has struggled to maintain its upward momentum. In response, miners have begun to sell off their assets to secure profits. This shift is creating new headwinds for BTC in August.
Bitcoin’s Bullish Movement Halted as Miners Switched from Hodling to Selling
As BTC’s value began to rise at the beginning of the month, miners on the Bitcoin network also increased their accumulation, which was reflected in the growth of the coin’s Miner Reserve.
According to data from CryptoQuant, this metric, observed using a seven-day moving average (7-day SMA), increased by 0.05% between July 1 and July 22, peaking at 1.808 million coins.
The Miner Reserve metric tracks the total amount of BTC held in wallets associated with mining entities. When the reserve rises, it indicates that miners are holding their coins instead of selling, reflecting a bullish sentiment or an expectation of a price increase.
However, following BTC’s rise to its July 14 peak and during the ongoing phase of price stagnation—where it continues to trade—the bullish sentiment among miners began to wane. According to CryptoQuant, the Miner Reserve has been on a downward trend since July 22, suggesting increased profit-taking or declining confidence in BTC’s short-term price outlook.
Since miners control a significant portion of BTC’s newly issued supply, a change in their behavior can influence the price direction. A drop in such miner reserves could increase selling pressure and raise the risk of a BTC price correction in August.
Institutional Inflows in August Could Mitigate Miner Selling Pressure
In an exclusive interview with Abdul Rafay Gadit, Co-Founder and CFO of Zignaly, he stated that the increase in miner reserves early in July was “likely a short-term pause rather than the beginning of an aggressive accumulation.”
“The increase in miner reserves suggests that miners are opting to hold their BTC, possibly waiting for stronger market signals or more favorable price conditions. It doesn’t yet reflect a broad-based accumulation; it seems more like a strategic slowdown in selling. If Bitcoin’s price stabilizes or shows an upward trend, we might see accumulation gradually resume, but for now, it’s more about capital preservation, not making bold bets,” he told BeInCrypto.
When asked about the relative impact of miner activity versus institutional demand on BTC’s current price performance and what to expect, Gadit noted:
“Institutional demand is the real backbone of Bitcoin’s current price structure. The inflows, particularly from ETFs managed by BlackRock, Fidelity, and Ark, create a consistent structural demand that supports price levels more effectively than reduced selling from miners.”
He added:
“While miner behavior plays a role in alleviating short-term supply pressure, the real force shaping the market’s direction is the growing expectation of institutional capital, broader participation, and a more favorable regulatory climate. The reality is, miners are no longer setting the pace; institutions are.”
With the increasing institutional demand for BTC—as reflected by the steady inflows into BTC-backed ETFs—potential selling pressure from miners could be effectively counterbalanced, helping to keep the coin’s price stable in August.
According to data from SoSoValue, BTC ETFs have recorded $237 million in net inflows so far this week, even as the coin has traded mostly sideways. This corroborates Gadit’s view that institutional capital, rather than miner activity, is the main force supporting BTC’s price and could stabilize it in the coming month.
Can Bitcoin Break Out of Its Sideways Trend?
At the time of writing, BTC is trading at $117,826, fluctuating between a support base formed at $116,952 and resistance at $120,811. If institutional demand increases and overall market sentiment improves, the coin’s price could break through the $120,811 resistance and move towards its all-time high in August.
On the other hand, if bearish pressure mounts, the coin could fall below the $116,925 level and drop to $114,354.
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