Amr Taha
Bitcoin Miners Send 21,140 BTC to Binance as Reserves Near Five-Year Lows
Bitcoin miners transferred 21,140 BTC to Binance on October 26, worth approximately $1.7 billion at prevailing prices, marking the sixth time miner inflows to the exchange have exceeded 20,000 BTC since February 2026. This recurring pattern comes as total Bitcoin miner reserves have declined to approximately 1.19 million BTC, near their lowest levels in over five years. At the beginning of 2024, miner reserves stood near 1.22 million BTC, approximately 30,000 BTC higher than current levels. The decline has persisted despite Bitcoin's substantial price appreciation during parts of 2024 and 2025. Meanwhile, BlackRock's iShares Bitcoin Trust (IBIT) recorded positive BTC holdings netflows worth approximately $105 million on October 26 and $133 million on October 27, totaling $238 million across two consecutive days. Why Do Bitcoin Miners Sell When Prices Rise? Several factors can explain miners' selling behavior during price rallies: 1. Profit-Taking: Miners may capitalize on higher Bitcoin prices by converting previously accumulated BTC into cash. 2. Operating Costs: Electricity, equipment, cooling, and salaries are largely paid in fiat currencies, while mining revenue is earned in BTC. 3. Halving Preparation: Reduced block rewards can encourage miners to build cash reserves and upgrade equipment before or after halving events. 4. Stronger Market Demand: Rising prices and deeper liquidity can provide opportunities to sell substantial BTC holdings through exchanges or OTC transactions. Miner–ETF Divergence While miners continue transferring substantial BTC volumes to exchanges amid declining reserves, BlackRock's IBIT is recording positive holdings inflows, highlighting contrasting supply and demand behavior between Bitcoin miners and ETF investors.