According to On-chain, Bitcoin miner outflows were elevated in recent times. This suggests that miners are involved in the selloff that brought the cryptocurrency below $42k.
Bitcoin Miner outflows spiked up before the crash below $42k
In a CryptoQuant article, an analyst noted that BTC miners appear to be one of the key sellers for the drop in price to $42k.
The relevant indicator here is the “miner outflow,” which measures the total amount of Bitcoin exiting wallets of all miners.
If this metric is valued high, that means miners will be moving large quantities of coins from their wallets. This trend could be negative for crypto prices as it might indicate that the original whales are being discarded.
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However, the low value of these outflows suggests a normal or even healthy level of miners selling. If this trend continues, it can be bullish on the BTC price.
Below is a chart that illustrates the Bitcoin mining outflow trends over the past few months.
The indicator seems to have seen a significant increase in value recently. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that Bitcoin miners outflows have been showing spikes during the weeks leading up to the market crash.
It would indicate that miners may have been involved in recent dumps, which sent the price of the coin below $42k.
As the quant indicated in the chart, a trend such as this was observed several times over the last few months.
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Currently, it’s unclear whether Bitcoin miners have already calmed down or if more selling is coming in the next few days.
BTC Prices
After around twenty days of holding strongly above the level, Bitcoin’s price is now once again revisiting the $41k mark.
At the time of writing, the coin’s price floats around $41.1k, down 11% in the last seven days. In the past month, crypto’s value has risen by 4%.
Below is a chart showing the change in BTC’s price over the past five days.
BTC's value seems to have fallen in the last twenty-four hour | Source: BTCUSD on TradingView
The sharp fall in coin price, as well as on the larger market, has led to a lot of liquidations. The liquidations in the last 24hrs have reached more than $322million, with $175 million occurring within the first 4 hours.
Unsplash.com's featured image. Charts by TradingView.com. CryptoQuant.com chart.