Bitcoin Miner Selling Still Elevated, On-Chain Data Shows
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Data on the chain shows that Bitcoin miners have recently continued to invest large amounts of deposits into exchanges, which is a bearish signal of the price of BTC.
Bitcoin Miner Exchange Netflow has been seeing positive spikes
In the new postal On X, CryptoQuant author IT Tech discusses the latest trends in Bitcoin miners to exchange traffic with miner traffic metrics. As the name suggests, this indicator measure is NetFlow Occurs between miner-related wallets and centralized exchanges.
When the value of the metric is positive, this means miners store net numbers on these platforms. Typically, these chain validators only need to move to the exchange when they want to sell, so this trend may have a bearish impact on the price of the asset.
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On the other hand, indicators with negative values ​​mean that the outflow of miner exchange outflow is greater than the inflow of miner exchange. Such a trend suggests that such queues may be accumulating, which is naturally bullish for BTC.
Now, the following chart shows the trend of Bitcoin miners exchanging traffic vs. miner traffic over the past year:
As shown in the figure above, the metric has been registering significant positive values ​​because Bulls rally Starting from the last few months of 2024, it is implied that miners have been deposited on these platforms.
During this period, the indicator has also been marking some net outflows, but they are significantly smaller in size compared to net inflows. Given the beginning of deposits at the beginning of the rally, it seems to be a motivation arising from profit purposes.
However, recently, the bullish momentum has already cooled down, while BTC prices have fallen, but miner inflows are still continuing. Now, this group may just be panic for sale, worrying Bear market.
Miners are entities that regularly participate in distribution because their operating costs are constantly being repaid in the form of electricity bills, and they have to pay them off in some way. Usually, this kind of sales is not a scale that cannot be absorbed by the market, so Bitcoin will not be affected too much.
But BTC can indeed suffer a bearish setback during a period when miner sales are of great significance. Miner inflows are currently low compared to last year’s rally, but still have significant levels. “If miner sales accelerate, it could introduce short-term volatility into the market,” analysts noted.
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It remains to be seen what bitcoin miners will do next and whether their potential sales will have any impact on the assets.
BTC price
At the time of writing, Bitcoin floated about $83,400, up nearly 6% over the past seven days.
Featured images from dall-e, charts from cryptoquant.com, tradingview.com
