Miners Continue Transfers To Exchanges

According to on-chain data, miners sent large amounts of Bitcoin recently to spot exchanges. This can have a negative impact on the cryptocurrency’s value.

Bitcoin miners to spot exchanges flow has risen over the past day

A CryptoQuant analyst points out that the recent surge in deposits from miner exchanges is greater than other recent peak.

The relevant indicator here is the “miners to spot exchanges flow mean,” which measures the total amount of Bitcoin being transferred by miners to spot exchanges.

This metric is worth more than a penny if it rises in value. It means that miners just sent large amounts of coins to the exchanges. This trend could be bearish on the BTC price since chain validators often deposit their coins to spot markets to sell.

On the other hand, the value of the indicator being low suggests there aren’t many transactions happening from miner wallets to centralized exchange wallets. Such a trend can be either neutral or bullish for the value of the coin as it implies there isn’t much selling pressure coming from this cohort right now.

This chart shows how Bitcoin miners have flown over the past couple weeks.

Bitcoin Miner To Spot Exchange Flow

 Source: CryptoQuant| Source: CryptoQuant

You can clearly see that Bitcoin miners who spot exchanges have experienced a large spike over the past 24 hours.

Many exchange outflows from miners occurred in the last week, and each one resulted in a price decline.

The latest rise in miner spot deposits has been significantly greater than others in this time period and it has happened while the price is already falling. This is in contrast to the past ones that occurred at the peak of the market.

This could be a continuation of the inflows from previous miners, which would also make these new deposits bearish for Bitcoin.

BTC Prices

At the time of writing, Bitcoin’s price floats around $20.1k, up 4% in the last seven days. The crypto’s value has fallen 17% over the last month.

The chart below shows how the currency’s price has changed over the past five days.

Bitcoin Price Chart

The crypto market has seen a drop in value and it appears that the price of this currency has dropped again.| Source: BTCUSD on TradingView
Featured image by Brent Jones, Unsplash.com. Charts from TradingView.com and CryptoQuant.com.

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