Bitcoin Miner OTC Balances Continue to Decline as BTC Supply Tightens
Bitcoin (BTC) balances held in miner-linked over-the-counter (OTC) desks continue to shrink, leaving fewer coins available for large private transactions outside exchanges.
Since November 2021, miner OTC holdings have fallen from around 500,000 BTC to 139,700 BTC, a decline of nearly 72%. Miners have steadily reduced their reserves and have yet to significantly replenish them following the 2024 Bitcoin halving.
As a result, OTC Bitcoin supply has become increasingly limited, while the flow of BTC from miners to exchanges has also declined. This points to lower selling pressure in the market.
At the same time, Bitcoin’s price has continued to climb despite the shrinking OTC inventories, reflecting strong demand amid tightening supply. If institutional investors and whales continue accumulating BTC, reduced liquidity could support further price gains over the coming quarters.
Bitcoin Supply on Exchanges Also Continues to Shrink
The tightening supply is not limited to miner-linked OTC desks—it is also becoming evident across cryptocurrency exchanges.
On July 20, Bitcoin recorded US$686 million in exchange net outflows. Binance led the withdrawals with US$570 million in net outflows, marking its largest BTC withdrawal since April.
Meanwhile, Bybit recorded approximately US$65 million in net outflows, followed by Coinbase with US$48 million and HTX with nearly US$3 million.
The coordinated withdrawals across multiple major exchanges suggest that investors are moving their BTC into private wallets, reducing the amount of Bitcoin readily available for sale on the spot market.
This trend complements the decline in miner OTC balances, reinforcing a tighter supply environment. If demand continues to strengthen, lower exchange liquidity could further amplify Bitcoin’s upside potential in the months ahead.
Long-Term Holders Remain Reluctant to Sell
Despite Bitcoin’s recovery from recent lows, long-term holders have shown little interest in taking profits.
This is reflected in the Coin Days Destroyed (CDD) indicator, which has remained relatively flat at around 16.4 million. CDD measures the movement of older Bitcoin that has been held for extended periods. Its stable reading suggests that most long-term holders are still choosing to keep their BTC rather than sell.
Although CDD briefly increased, the rise did not develop into sustained selling pressure, indicating that older coins largely remain inactive.
With long-term holders continuing to hold onto their Bitcoin, future price action is becoming increasingly dependent on fresh spot demand. If new capital continues to absorb the shrinking tradable supply, Bitcoin could be well-positioned to extend its bullish momentum.
