Bitcoin Price Drops as 10-Year & 5-Year BIR Fall, What It Means?

Bitcoin price stabilized at $86,400 following market volatility as miner reserves kept growing, which indicates changing market patterns.

Bitcoin miners currently hold 1.8111 million BTC, which demonstrates their belief that prices will continue to increase.

At the same time, the number of Bitcoin whale wallets currently holds their lowest value since 2019 despite Bitcoin surpassing $100,000.

Meanwhile, the Breakeven Inflation Rate has shown a downward trend, which aligns with Bitcoin’s market pullback.

The market trends demonstrate fundamental changes in investor behavior and supply dynamics, alongside macroeconomic factors that affect Bitcoin price movements.

Bitcoin Miner Reserves Surge as Price Stabilizes Around $88.2K

Bitcoin miner possession has been increasing, as historical data shows that higher holdings tend to reduce market supply.

The accumulation phase of recent times has led to multiple instances of reserve growth on February 24, March 1 and March 7.

The rising miner BTC holdings suggest that miners are adopting a long-term investment strategy instead of immediate selling.

The market experiences upward price movements when miners choose to accumulate Bitcoin, since this action decreases the amount of Bitcoin available for trading.

Conversely, the decrease of reserves indicates selling pressure that might force the price downward.

Miners demonstrated accumulation patterns from February 19 to March 7, which stabilized Bitcoin price, indicating their readiness for future market appreciation.

The current exchange-based BTC holding pattern shows signs of reducing supply, which may lower market selling pressure.

The ongoing accumulation by miners has the potential to drive Bitcoin prices back toward $98,000 and higher.

However, the Bitcoin price may undergo temporary drops when miners begin substantial reserve sales before continuing its upward trajectory.

Bitcoin Whale Holdings Drop to Six-Year Low as Price Surges

Meanwhile, Bitcoin whale ownership has reached its most minimal point since 2019 despite Bitcoin prices exceeding $100,000.

Large investor holdings of Bitcoin have decreased steadily as the cryptocurrency price experienced significant upward movement.

According to Intotheblock data, Whale balances, represented by the blue line, have decreased steadily throughout, while Bitcoin’s price has demonstrated an upward trend.

Whale holdings track the total amount of BTC owned by wallets with large balances, often controlled by institutions or individual investors with significant influence over the market.

The reduction of this metric shows that major asset owners have either sold their holdings or transferred their assets to other wallets.

This trend shows signs of profit-taking behavior as whales exploit rising prices to reduce their Bitcoin positions.

Bitcoin has risen from under $20,000 during early 2023 to exceed $100,000 in the early months of 2025, yet major investors have been reducing their Bitcoin ownership.

Bitcoin will likely experience higher price volatility if whale balances continue to drop as the distribution of supply to smaller investors will occur.

However, the price of the token may continue its upward trajectory in the long term because strong demand from institutions and retail investors would provide support even though whale ownership has decreased.

Price Declines as Breakeven Inflation Rate Drops

Bitcoin price declined after breaking above $100,000 at the same time when the Breakeven Inflation Rate (BIR) experienced a downward trend.

Investors now anticipate future low inflation rates at 2.4% since the 5-Year BIR (red line) and 10-Year BIR (blue line) have decreased from their previous levels above 2.6%.

The downward trend in BIR indicates diminishing market concern about inflation risks, thus affecting the demand for Bitcoin as an inflation-hedging asset.

The calculation of the Breakeven Inflation Rate depends on comparing Treasury Inflation-Protected Securities (TIPS) yields with nominal Treasury bond yields.

Bitcoin price fell after the 5-Year BIR dropped from 2.6% to around 2.4%, which strengthens the relationship between macroeconomic forecasting and Bitcoin market movements.

Historical data shows the market demand for Bitcoin increases when the BIR surpasses 2.5% because investors want protection from inflation.

However, the market directs capital toward traditional investments such as bonds and equities when BIR decreases.

The Bitcoin price has dropped to $95,000 while following the downward movement of BIR.

The ongoing decline of 5-Year and 10-Year BIR toward 2.2% may result in increased selling pressure on the token as institutional investors will shift their capital toward safer traditional assets.

On the other hand, the Bitcoin market might experience a price recovery and reverse its downward movement if BIR maintains its current level or increases above 2.5%.

The market closely follows Federal Reserve policy changes and upcoming economic reports.

The upward movement of BIR because of inflation expectations could strengthen Bitcoin’s role as a hedge asset while potentially triggering a price increase.