According to the latest report from CryptoQuant, the balance of over-the-counter (OTC) accounts of Bitcoin miners has reached its highest level in over two years, which may indicate that Bitcoin prices may face downside risks in the short term. Historical data shows that the increase in OTC account balances of miners is often closely related to the decline in Bitcoin prices.

According to a report on August 21, 2023, the OTC account balance of miners has surged by 70% in the past three months, reaching 368000 bitcoins, equivalent to approximately 22.36 billion US dollars. This balance level is the highest record since June 2022. CryptoQuant pointed out that the sharp rise in OTC account balances indicates that miners may be engaged in large-scale Bitcoin selling activities.

In history, the surge in OTC account balances often foreshadowed a significant drop in Bitcoin prices.

For example, in May 2018, when the OTC account balance exceeded 400000 Bitcoin, the price of Bitcoin was $8475, but by December of the same year, the price had plummeted to $3183, a decrease of 63%. Similarly, in November 2021, when the price of Bitcoin was around $64000 and the OTC account balance of miners reached a historical high of nearly 500000 Bitcoin, two months later in January 2022, the price of Bitcoin dropped to $35058, a decrease of 45%.

In addition, CryptoQuant analysis points out that miners choose to sell Bitcoin through OTC trading mainly to seek better execution results and minimize the impact on market prices, as the OTC market has high liquidity.