Miners Hold BTC Reserves as Inflows Drop to Cycle Lows

Key Points

• Miner outflows remain below 2 BTC (7-day average) despite BTC’s record high.
• Reduced volatility lowers pressure on miners to sell reserves.
• Network strength and ETF influence drive a shift toward long-term accumulation.

Bitcoin miner outflows have dropped to historic lows, even as Bitcoin’s price surpassed $114,000 in 2025. This signals a potential shift in miner strategy, as past cycles showed increased selling during bull markets.

Unlike previous years, outflows now remain below 2 BTC (7-day average), while in earlier cycles they often exceeded 10 BTC. Miners appear to be reducing their distribution pace despite favorable market conditions, which may indicate long-term confidence.

Reduced Volatility Eases Financial Pressure on Miners

Bitcoin’s current cycle has experienced minimal drawdowns, with the largest at only -7.3%, far less than past corrections. This stability reduces financial stress on miners, allowing them to operate without heavy selling pressure.

Previous cycles forced miners to liquidate large reserves during corrections exceeding -70%, which severely impacted operations. Now, Bitcoin’s rising valuation allows miners to meet costs with minimal sales.

Network Strength and Strategic Shifts Support Long-Term Holding

Recent on-chain indicators point to a major shift in how miners manage their reserves amid growing network resilience. Key metrics suggest miners are moving away from short-term selling and embracing long-term accumulation.

The Miners’ Position Index (MPI) shows no aggressive late-cycle sell-offs, which were typical in past bull markets. While some pre-halving selling occurred, the absence of panic selling signals greater confidence among miners.

ETF approvals and Bitcoin’s use as a reserve asset by major economies may be driving this strategic shift. These developments allow miners to hold rather than sell into short-term retail demand.

Meanwhile, mining difficulty has hit all-time highs, reflecting increased network participation and enhanced security. This marks the so-called “Banana Zone,” indicating rapid growth in computational power.

Transaction fees have also surged in USD terms, yet the market has not overheated or reversed. Instead, Bitcoin’s price continues to rise in a measured, stair-step pattern.

This contrasts sharply with prior cycles, where fee spikes often signaled market tops followed by steep corrections. Now, miners appear more committed to accumulating than capitalizing on short-term gains.

“The combined signals from MPI, difficulty, and fee metrics reveal a clear departure from past patterns. Miners appear focused on accumulation, while the network itself grows stronger,” said on-chain analyst @avocado_onchain.