Miner Conviction Grows While India Eyes Strategic Bitcoin Reserve

Bitcoin miners are keeping their coins despite falling earnings, while India’s ruling party is pushing for a national Bitcoin reserve pilot.

Miner Conviction Grows While India Eyes Strategic Bitcoin Reserve

Bitcoin’s role in international financing appears to be developing, with miners increasingly choosing to hold their coins amidst a revenue decline and India’s ruling party proposing a sovereign Bitcoin reserve pilot to enhance economic resilience.

Bitcoin Miners Defy Market Logic, Stockpile BTC In Spite Of Declining Earnings and Record Costs

Bitcoin miners have substantially increased their BTC holdings regardless of a tough profitability environment and Bitcoin trading near its all-time highs. According to new information published by on-chain analytics firm CryptoQuant, miners have collectively added 4,000 BTC to their reserves considering that April 2025– bringing their overall holdings in between 100 and 1,000 BTC to around 65,000 BTC, the greatest level since November 2024. This build-up has actually happened against the backdrop of installing operational strain. Daily revenues for miners have plunged to a two-month low of $34 million since June 22, mostly due to falling transaction costs and a small dip in BTC’s cost following a current all-time high. In spite of these pressures, miner selling activity has dropped drastically. Outflows from miner wallets, which peaked at 23,000 BTC each day in February 2025, are now down to simply 6,000 BTC– a pattern that suggests miners are focusing on long-term value over short-term capital.

Bitcoin Miner Overall Outflows (Source: CryptoQuant)

Miners Sustain “Extreme Underpayment” Conditions CryptoQuant’s latest Weekly Report describes Bitcoin miners as being “incredibly underpaid,” noting that the present income environment is the harshest it’s been over the past year. This recession in miner income comes just months after April’s cutting in half event, which minimized the block aid from 6.25 BTC to 3.125 BTC– effectively halving the quantity of brand-new Bitcoin made per mined block.

Bitcoin Miner Profit/Loss Sustainability (Source: CryptoQuant)

Hashrate– the procedure of computational power on the Bitcoin network– has actually dropped by 3.5% in the last 10 days, marking the largest drawdown since July 2024. This has likely put added pressure on marginal mining operations, especially those in regions with high energy costs or aging devices. Still, lots of miners appear to be weathering the storm. CryptoQuant qualities this durability to an average operating margin of 48%, which enables larger, more efficient mining companies to continue stockpiling BTC instead of liquidating it to cover expenditures.

Possibly the most noteworthy trend is the near-complete cessation of sales from so-called “Satoshi-era” miners– entities or people who mined Bitcoin in its earliest days, most likely in between 2009 and 2011.

These early adopters are frequently considered market-moving whales due to their big BTC holdings and historic propensity to offer into strength during significant bull markets.

Bitcoin Satoshi-era Miner netflows (Source: CryptoQuant)

Nevertheless, 2025 appears to mark a shift in method. According to CryptoQuant, Satoshi-era miners have sold simply 150 BTC this year, compared to almost 10,000 BTC in 2024. That’s a staggering 98.5% decrease in sales volume, even as BTC/USD continues to flirt with brand-new record highs. Historically, movement of coins from these dormant addresses has signaled market tops and sparked panic among retail financiers. The lack of activity from these wallets suggests either a newfound persistence– or a much deeper conviction that Bitcoin’s bull run is far from over.

Capitulation or Conviction?

This cumulative rejection to offer, even in the face of diminishing earnings, might be a bullish signal for Bitcoin’s price trajectory. Previously in June, the widely-followed “Hash Ribbons” indication– which keeps an eye on miner capitulation stages– flashed a classic “buy” signal. The metric has actually proven historically reputable in determining price bottoms, as miner capitulation tends to precede healings when weaker operators exit and long-term holders double down. With BTC currently trading simply a few percentage points listed below its all-time high, miners’ behavior could suggest that they believe the marketplace still has significant advantage. Their hesitation to sell at or near the top might be signifying a longer-term rate horizon beyond even the most positive projections presently circulating in the crypto space.

The implications of miners becoming net accumulators are substantial. As one of the few constant sources of sell pressure in the Bitcoin community, a decline in miner sales reduces the overall supply of BTC offered on the open market. Coupled with continued institutional inflows and increasing adoption of spot Bitcoin ETFs, this creates a supply-demand imbalance that could function as a catalyst for further cost appreciation. Moreover, the alignment in between miner activity and long-term holding habits strengthens a more comprehensive narrative of Bitcoin’s maturation. When miners rushed to discard their holdings after each halving cycle, gone are the days. Instead, the pattern is shifting toward tactical reserve management and capital discipline– a sign of the industry’s growing elegance.

India’s Ruling Party Spokesperson Prompts Bitcoin Reserve Pilot to Increase Economic Durability

Meanwhile, in a relocation that could considerably improve India’s digital asset landscape, Pradeep Bhandari, the national spokesperson for India’s ruling Bharatiya Janata Party (BJP), has actually publicly promoted for a pilot program to develop a sovereign Bitcoin reserve. The proposition, outlined in an op-ed for India Today, places the effort as a pragmatic step towards enhancing national financial strength and accepting the growing authenticity of digital properties on the worldwide stage.

The Worldwide Context: Bitcoin Ends Up Being a Strategic Property Bhandari’s call for a Bitcoin reserve pilot is not made in isolation. The United States has recently detailed prepare for budget-neutral Bitcoin acquisitions to bolster its tactical reserves. At least three US states have licensed Bitcoin as a main reserve asset. Bhutan has deployed its eco-friendly energy surplus to power state-backed Bitcoin mining operations. These developments show a more comprehensive shift in how countries see crypto– not simply as speculative assets but as strategic instruments with macroeconomic and geopolitical energy. According to Bhandari, India is uniquely placed to lead this international shift, pointing out the nation’s quickly growing renewable resource sector. With large potential in solar, wind, and hydroelectric power, India could establish a sustainable, state-managed Bitcoin reserve without compromising its environmental goals. He stressed that such a pilot would not only align with India’s ambitions to be a worldwide digital leader but also stimulate innovation and bring in institutional interest. A government-supported Bitcoin reserve could provide confidence to both domestic and international investors, placing India as a leader in the accountable adoption of crypto infrastructure.

Taxed but Unregulated: India’s Crypto Conundrum Currently, India’s regulatory stance on cryptocurrencies stays uncertain. While digital properties such as Bitcoin (BTC) and Ethereum (ETH) are taxed under a flat 30% capital gains regime, there is no formal regulatory framework directing their usage, custody, or trading. Under Area 115BBH of the Earnings Tax Act, profits from offering virtual digital possessions (VDAs) are taxed at 30%. While acquisition costs can be deducted from gains, no deductions are enabled losses or other expenses. Additionally, a 1% Tax Deducted at Source (TDS) is used to all crypto deals exceeding 10,000 (approximately $115), additional moistening liquidity and market involvement. This duality– taxation without guideline– has actually stifled innovation and hindered retail and institutional participation alike. Bhandari referenced India’s leadership during its 2023 G20 presidency, where it led a crypto policy working group in collaboration with the International Monetary Fund (IMF). He cautioned that the worldwide community is moving faster than India. While suggestions will take their due course, Bhandari said, jurisdictions like Russia, China, Brazil, and other G20 countries led by the US are not pausing their crypto efforts to await an agreement. He argued that India dangers falling behind if it stops working to show seriousness. A sovereign Bitcoin reserve pilot could function as both a policy accelerator and a signaling system to international markets.

A Strategic and Transparent Course Forward According to Bhandari, the initial step towards embracing this chance is the launch of a Bitcoin reserve pilot program, accompanied by distinct regulatory policies. He stressed that such a structure ought to be transparent, investor-friendly, and created to cultivate development while upholding customer protections. He believes the initiative might serve as a testing ground for more comprehensive digital property methods, from public-private collaborations in crypto infrastructure to government-backed mining operations powered by renewables.

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