Bitcoin miners dump over 10,000 BTC on exchanges, CryptoQuant data shows

Bitcoin miners have transferred over 10,000 BTC from their wallets to exchanges in the past 24 hours, according to data from CryptoQuant, a blockchain analytics firm. This indicates that miners are likely selling their holdings to secure funds for their operations.

Miners are the entities that secure the Bitcoin network and process transactions by using their computing power. They receive rewards in the form of newly minted bitcoins for each block they produce. However, they also incur costs such as electricity, hardware, and maintenance. Therefore, they often sell some of their bitcoins on the market to cover these expenses and ensure their long-term viability.

CryptoQuant tracks the flow of bitcoins from miners’ wallets to exchanges, which can serve as a proxy for miners’ selling pressure. The firm’s data shows that over 10,000 BTC were sent to exchanges in the last day, which is the highest level since November 2023. The majority of these bitcoins were sent to Binance, the largest cryptocurrency exchange by trading volume.

Source: CryptoQuant

CryptoQuant’s CEO, Ki Young Ju, tweeted that this influx of bitcoins from miners could signal a local top for the price of Bitcoin, which has been trading above $40,000 for the past week. He said that miners are usually good sellers and that they tend to sell at the peak of the market.

However, he also noted that this does not necessarily mean that Bitcoin’s price will drop significantly or permanently. He said that miners’ selling pressure is only one of the many factors that affect the market and that Bitcoin’s long-term trend is still bullish.

He advised market participants to keep an eye on these trends and adjust their investment strategies accordingly. He also suggested that investors could use other indicators, such as the CryptoQuant’s Miners’ Position Index (MPI), which measures the ratio of bitcoins leaving miners’ wallets to the 1-year moving average of the outflows, to gauge the sentiment of miners. A high MPI value indicates that miners are actively selling, while a low value indicates that they are holding or accumulating.

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