Bitcoin’s role in global finance is undergoing a profound transformation. As miners increasingly hold onto their BTC despite declining revenues, and India’s ruling party explores a sovereign Bitcoin reserve pilot, the digital asset is being repositioned from speculative instrument to strategic economic tool.
Bitcoin Miners Defy Market Logic, Hoard BTC Amid Revenue Downturn
Despite challenging market conditions and Bitcoin trading near all-time highs, miners are stockpiling BTC at an accelerating pace. According to on-chain analytics firm CryptoQuant, miners have collectively accumulated 4,000 BTC since April 2025, pushing their total holdings (for wallets holding between 100 and 1,000 BTC) to approximately 65,000 BTC—the highest level since November 2024.
This accumulation is occurring even as daily mining revenues have slumped to a two-month low of $34 million as of June 22. The drop stems from reduced transaction fees and a slight pullback in price following recent highs. Yet, miner outflows—coins being sold or moved to exchanges—have plummeted from a peak of 23,000 BTC per day in February 2025 to just 6,000 BTC, signaling a decisive shift toward long-term holding.
👉 Discover how top traders analyze miner behavior to predict market moves.
Miners Navigate “Extreme Underpayment” After Halving
CryptoQuant’s latest Weekly Report describes current conditions as “extremely underpaid” for miners—the harshest revenue environment in the past year. This follows the April 2025 Bitcoin halving, which cut the block subsidy from 6.25 BTC to 3.125 BTC, directly reducing income for every mined block.
The network’s hashrate has declined by 3.5% in the last 10 days, the largest drawdown since July 2024. This suggests weaker mining operations—particularly those with outdated hardware or high energy costs—are struggling to remain profitable.
Yet, the industry’s resilience persists. Larger, more efficient mining firms maintain an average operating margin of 48%, enabling them to absorb short-term losses and continue accumulating BTC rather than liquidating holdings.
One of the most telling shifts involves Satoshi-era miners—early adopters who mined Bitcoin between 2009 and 2011. These historically influential holders typically sell during bull markets, often triggering market volatility.
However, in 2025, their behavior has changed dramatically. They’ve sold just 150 BTC year-to-date, compared to nearly 10,000 BTC in 2024—a staggering 98.5% decrease in sales volume—even as prices approach new records.
This near-total halt in selling suggests deep conviction. Rather than cashing out at peak prices, these long-term holders appear to believe Bitcoin’s bull run is still in its early stages.
Capitulation or Conviction? A Bullish Signal Emerges
Miners’ refusal to sell amid financial pressure may be one of the strongest bullish indicators in the market. In early June, the Hash Ribbons indicator—a widely followed metric that detects miner capitulation—flashed a classic “buy” signal.
Historically, this signal has preceded major price recoveries. When weaker miners exit the network due to unprofitability, selling pressure eases, allowing prices to rebound as demand outpaces reduced supply.
With Bitcoin trading just below its all-time high, sustained miner accumulation suggests confidence in further upside. Their actions imply a belief that current prices are not the peak but part of a longer-term upward trajectory.
This shift has broader implications. Miners have traditionally been a consistent source of sell pressure. As they transition into net holders, the available supply of BTC on exchanges tightens. When combined with growing institutional inflows and rising adoption of spot Bitcoin ETFs, this creates a structural supply-demand imbalance—a powerful catalyst for price appreciation.
Moreover, this trend reflects Bitcoin’s maturation. The era of miners dumping rewards post-halving is fading. Today’s landscape favors strategic reserve management, capital discipline, and long-term vision—hallmarks of a professionalized industry.
India Proposes Sovereign Bitcoin Reserve Pilot to Strengthen Economic Resilience
In a significant development for global crypto policy, Pradeep Bhandari, national spokesperson for India’s ruling Bharatiya Janata Party (BJP), has called for a pilot program to establish a sovereign Bitcoin reserve. The proposal aims to enhance India’s economic resilience and position the country as a leader in digital asset innovation.
Bhandari outlined his vision in an op-ed for India Today, framing the initiative as a pragmatic response to global financial shifts. He pointed to the United States’ strategic Bitcoin acquisitions and Bhutan’s state-backed mining projects as evidence that digital assets are gaining legitimacy in traditional finance.
“This isn’t a reckless pivot,” Bhandari emphasized. “It’s a calculated step toward embracing digital assets’ legitimacy.”
Bitcoin as a Strategic National Asset
Bhandari’s proposal reflects a growing global trend: nations treating Bitcoin not as a speculative asset but as a strategic reserve instrument with macroeconomic and geopolitical value.
The United States has introduced plans for budget-neutral Bitcoin purchases, and at least three U.S. states have approved Bitcoin as an official reserve asset. Meanwhile, Bhutan leverages its surplus renewable energy to power government-supported mining operations.
India, Bhandari argues, is uniquely positioned to join this movement. With rapid expansion in solar, wind, and hydroelectric power, the country could establish a sustainable, state-managed Bitcoin reserve without compromising environmental goals.
A government-backed reserve could also boost investor confidence, attract institutional capital, and accelerate innovation in India’s fintech sector—aligning with its ambition to become a global digital leader.
👉 See how countries are integrating Bitcoin into national reserves.
India’s Crypto Conundrum: Taxed but Unregulated
Despite its technological prowess, India’s crypto regulatory framework remains ambiguous. While profits from virtual digital assets (VDAs) like Bitcoin and Ethereum are taxed at a flat 30% capital gains rate under Section 115BBH of the Income Tax Act, there is no comprehensive regulatory structure governing their use or custody.
Additionally, a 1% Tax Deducted at Source (TDS) applies to all crypto transactions exceeding ₹10,000 (~$115), discouraging frequent trading and reducing market liquidity.
This “taxed but unregulated” model has created uncertainty, stifling innovation and deterring both retail and institutional participation.
Bhandari highlighted India’s leadership during its 2023 G20 presidency, where it co-led a crypto policy working group with the IMF. However, he warned that global momentum is outpacing domestic action.
“While we deliberate,” he noted, “jurisdictions like Russia, China, Brazil, and U.S.-led G20 members are advancing their crypto strategies without pause.”
Without urgent action, India risks falling behind in the global digital economy race.
A Transparent Path Forward
Bhandari advocates for launching a Bitcoin reserve pilot program alongside clear regulatory policies. He stresses that such a framework must be transparent, investor-friendly, and innovation-driven, with strong consumer protections.
The pilot could serve as a testing ground for broader initiatives—from public-private partnerships in blockchain infrastructure to renewable-powered government mining farms.
By taking this step, India wouldn’t just adopt crypto—it would help shape its future.
👉 Learn how governments are preparing for the next phase of digital finance.
Frequently Asked Questions (FAQ)
Q: Why are Bitcoin miners holding BTC despite lower revenues?
A: Miners are prioritizing long-term value over short-term cash flow. With strong operating margins (averaging 48%), many can afford to hold BTC even during revenue downturns, especially after the 2025 halving reduced block rewards.
Q: What does the Hash Ribbons indicator suggest about Bitcoin’s price?
A: The Hash Ribbons “buy” signal indicates that weaker miners may be exiting the network. Historically, this precedes price recoveries as selling pressure decreases and long-term holders accumulate.
Q: How much BTC have Satoshi-era miners sold in 2025?
A: Just 150 BTC—down from nearly 10,000 BTC in 2024. This 98.5% drop suggests strong conviction among early adopters that Bitcoin’s bull market is ongoing.
Q: What is India proposing regarding Bitcoin?
A: BJP spokesperson Pradeep Bhandari is urging a pilot program to create a sovereign Bitcoin reserve, leveraging India’s renewable energy capacity to support sustainable mining and economic resilience.
Q: Is Bitcoin legal in India?
A: Yes, owning and trading Bitcoin is legal. However, there is no formal regulatory framework—only taxation (30% capital gains + 1% TDS), which creates uncertainty for investors and businesses.
Q: Could other countries follow India’s potential move?
A: Yes. As more nations treat Bitcoin as a strategic asset—like the U.S. and Bhutan—others may follow suit, especially those with abundant renewable energy or financial innovation ambitions.
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