Bitcoin on-chain data shows that miners have transferred a huge amount of coins to cryptocurrency exchanges.
On-chain Data Suggests Miners Transferred 11,816 BTC To Exchanges
As pointed out by a CryptoQuant post, 20 July saw a huge outflow from Bitcoin miners. The total outflow from that day is around 12k.
Here is a chart that illustrates the trend in all miners BTC outflow over the last one year:
BTC miner outflow seems to have spiked
There are a few interesting features in the chart. This sudden rise of almost 12k BTC observed on Wednesday is the most since May, when the price of the cryptocurrency crashed around 50%.
Related Reading | As Bitcoin Drops Below $30k, Stablecoins Surpass $100 Billion In Total Supply
This spike comes after a period where the miner outflows were relatively low when compared to the preceding months.
As miner outflows only show how much Bitcoin was transferred by miners to exchanges, it’s not possible to tell how much of it was actually sold off.
However, if the indicator’s value goes up, it does showcase that selling pressure has increased among miners, and it could impact the price of the crypto.
Related Reading | TA: Bitcoin Bears Lose Strength, What Could Trigger A Decent Recovery
Another metric for knowing whether miners are selling or not is the Bitcoin all miners to all exchanges flow mean indicator. Here is the chart for it:
BTC miner to exchanges flow mean seems to be on the rise
The above graph makes it clear that the value of this indicator has been on the rise for sometime now, and 20 July also saw a spike.
The all miners to all exchanges flow mean showcases how the average transaction from miners to exchanges looks like. For 20 July, this value was just over 80 BTC, less than the 98 BTC spike seen just a few days back.
Though there are two things to consider regarding these miner metrics. The first is that many mining pools don’t believe that data like this is authentic.
The second is that due to China’s crackdowns on Bitcoin mining, the world hashrate took a nosedive. Now, miners have started relocating and restarting their operations in other countries. This would undoubtedly result in a change in these metrics as well.
Bitcoin Price
At the time of writing, BTC’s price floats around $32.5k, down 0.5% in the last 7 days.
Below is a chart showing the trend in the price of Bitcoin over the past 6 months.
BTC seems to be going up after a dip below $30k | Source: BTCUSD on TradingView
After a crash below $30k, Bitcoin has started to climb back up quickly. It remains to be seen if the coin can continue this trend and finally break past $35k, or if it’s going to be stuck in the same range as before again.
Featured image from Pexels.com, charts from CryptoQuant, TradingView.com
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