The movements of Bitcoin miners always attract attention. Just as the movements of the whales draw attention to. So what does this mean? Is a sales wave on the horizon? Let’s see for details.
Bitcoin miners transfers
According to data from Glassnode, Bitcoin miners transferred more BTC to exchanges in the past week than at any point in the past five years. Blockchain analytics firm reported that the hourly chart of the 7-day moving average for BTC miners shows exchange flows reaching a 5-year high of 55,068 BTC. According to Glassnode’s data, despite the rate of flow of funds from miners to exchanges, miners still hold 1,829,000 BTC (about $49 billion).
Miners’ reserves increased in the first days of June. It increased from 1 million 836 thousand recorded on 31 May to 1 million 845 thousand as of 2 June. However, it fell slightly during the same period after news broke of the U.S. Securities and Exchange’s (SEC) lawsuit against Coinbase and Binance. On June 11, Glassnode stated that miners are sending a significant amount of coins to exchanges. He reported that the largest entry was equal to $70.8 million. Despite the increased flow of miners to exchanges, BTC’s balance on exchanges reached a 3-month low of 2 million 280 thousand Bitcoin BTC due to outflows exceeding inflows. According to Glassnode data, Bitcoin’s stock market outflow has surpassed $56.3 million in entries in the last 24 hours.
What does it mean for BTC price?
There are mixed reactions as to what this could mean for Bitcoin. Generally, the flow of funds to exchanges indicates that a business plans to sell. This could mean that miners want to cash out their BTC due to the negative regulatory environment. Meanwhile, some market analysts believe that miners’ transactions show their confidence in Bitcoin’s future prices. Because their profitability largely depends on how well the asset performs.
Whatever the view, Bitcoin has dropped significantly over the past two weeks. In addition, many negative news impacted its performance. However, sentiment surrounding the flagship digital asset seems to have changed after BlackRock filed for the Bitcoin Spot ETF. Bitcoin is up 0.04% in the last 24 hours. At the time of writing, it is trading at $26,496. As a result, the activity of Bitcoin mines did not present a negative situation for Bitcoin. However, developments in the markets during the week will reveal a clear picture.
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