Bitcoin Miners' Balance Falls to Record Lows

After a rally fueled by China-US hopes, the BTC price is stalling at $103,000 as miners liquidate their reserves at record lows.

The Bitcoin (BTC) price has entered an intriguing consolidation phase, hovering around the $103,000 level after a vigorous bullish rally that began in early April. The world's leading cryptocurrency appears to be taking a break just below the key resistance zone at $107,000, while still maintaining firm support at the $100,000 threshold. Overall market sentiment remains clearly bullish, with BTC trading comfortably above the 50- and 200-period Exponential Moving Averages (EMAs), technical indicators that traditionally signal positive trends.

According to data released by on-chain analytics firm IntoTheBlock, the total balance of Bitcoin held by miners plummeted to 1.9 million coins. / TradingView

The Impetus Behind the Rise: Trade Truce and US Weakness

Bitcoin's recent bullish move was based on speculation about potential trade deals between the world's two largest economies, China and the United States, amid the prolonged tariff war. Hopes for a resolution or easing of trade tensions injected optimism into global markets, including the cryptocurrency sector. Additionally, the release of economic data reflecting some weakness in the US economy also contributed to Bitcoin's appeal as an alternative asset and potential refuge from traditional economic uncertainty.

Miners Alert! Massive BTC Liquidation at Unprecedented Levels

Amid this significant price appreciation, one key market player has begun to exhibit unusual behavior: Bitcoin miners drastically reduced their cryptocurrency positions. According to data revealed by on-chain analytics firm IntoTheBlock, the total balance of Bitcoin held by miners plummeted to 1.9 million coins, marking a new all-time low. This level breaks the support level of 1.92 million BTC, a figure that had remained relatively stable since December 2024. This sell-off suggests that miners, historically influential in supply and demand dynamics, are beginning to lose ground against other market participants.

Strategic pause or sign of impending weakness?

The current consolidation phase around $103,000 could be interpreted in several ways. For some analysts, it represents a natural pause after a strong push, allowing the market to absorb recent gains before attempting a new assault on the resistance at $107,000. Holding above the $100,000 support remains a positive sign within an established uptrend.

However, the significant reduction in miners' reserves raises questions. Are they selling to lock in profits after the rally, or are they anticipating a possible correction and seeking to mitigate risks? The diminishing influence of Bitcoin on the market could mean less selling pressure in the long term, but in the short term, a massive sell-off could exacerbate any bearish sentiment.

Bitcoin is at a crucial crossroads. Hopes for geopolitical settlements and economic weakness fueled its rise, but caution is setting in as the price consolidates and miners reduce their holdings to record lows. If the resistance at $107,000 is broken, we could see a renewed push toward higher levels. However, the liquidation by miners adds a layer of uncertainty. Investors should remain attentive to price action and on-chain data to discern whether this pause is the prelude to a new rally or the calm before the storm.