On-chain data reveals miners have sent out a never-before-seen quantity of Bitcoin to exchanges as the crypto touches $55k.
Bitcoin Miners Send An Unusual Amount Of Coins To Exchanges
As explained by a CryptoQuant post, on-chain information shows miners have sent an extraordinary quantity of Bitcoin to exchanges.
The indication of importance here is the “miner netflow.” This metric shows the net amount of coins that miners have actually been sending to exchanges.
When the miner netflow turns negative, it implies they are withdrawing more coins to personal wallets than they are sending out to exchanges. Such behavior would imply they are bullish on the price and feel purchasing pressure.
On the other hand, favorable values of the indication show that miners are sending out more Bitcoin to exchanges than they are withdrawing. Such worths usually mean there is a boost in the selling pressure among them.
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Now, here is a chart revealing the pattern in the metric over the last couple of years:
Miners seem to have actually started dumping BTC on exchanges|Source: CryptoQuant As the above chart shows, the netflow is showing a very large favorable spike. Such a worth of the metric is unmatched for Bitcoin.
Miners moving around their coins can have noticeable effects on the crypto's rate as they are, after all, the initial whales.
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Usually, a huge amount of coins being dumped on exchanges would cause a dip in the price of Bitcoin. While BTC being pulled off exchanges would have the opposite impact.
But there seems to be an intriguing trend that accompanies miner netflows. During the 2017 and 2021 bull runs, both, miners failed to capture the leading and sold off early around the first rate peak.
The cost did diminish a bit after they dumped their Bitcoin, however there were enough purchasers in each go to offset their inflows, and the rate went on to go much higher.
At the time of writing, Bitcoin's price floats around $54k, up 25% in the last seven days. Over the past month, the crypto has actually gotten 6% in value.
The below chart shows the pattern in the price of the coin over the last 5 days.
BTC's cost makes a big move up|Source: BTCUSD on TradingView
Bitcoin showed a really strong move up the other day as the coin's cost went as high as $55.5 k. Now that miners have begun offering here, it's possible the crypto might see a correction soon.
Nevertheless, if the pattern of miners stopping working to capture the cycle leading continues, then it's possible the rate might go even greater. Though that is only if there suffice other buyers in the market still.