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Data from the chain shows that Bitcoin miners have been conducting an unusually high number of transactions with centralized exchanges recently.
Bitcoin Miner for Exchange Transactions Just Saw a Spike
As noted by CryptoQuant author IT Tech in a new one after on X, the Miner to Exchange Transactions indicator has been high lately. The “Miner to Exchange Transactions” tracks the total number of transfers that miner-linked Bitcoin wallets make to addresses associated with exchanges.
When the value of this metric is high, it means that the miners are making a large number of moves to these platforms. Since one of the main reasons why these chain validators would crash on exchanges is for sales-related purposes, these types of trends can have a bearish effect on the BTC price.
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On the other hand, the low indicator implies that miners are not generating inflows to exchanges, possibly because they plan to hold their coins for a while. Obviously, this HODLing from this cohort could be a positive sign for the asset.
Here is a chart showing the trend in Bitcoin Miner to exchange transactions over the past few days:
As shown in the chart above, Bitcoin Miner to Exchange Transactions has recorded a major spike over the past day, indicating that miners have just made a large number of moves onto these platforms.
It is possible that this is an indication of a sell-off of these chain validators, but whether this potential sell-off would actually impact the cryptocurrency depends on the exact size of the coins involved in the transactions.
The analyst also shared the data of an indicator that provides information about this, called the Miner to Exchange Flow:
The chart shows that the value of this metric has also increased alongside the spike in Miner to Exchange transactions. At its peak, the metric reached 225 BTC, equivalent to just under $15.4 million at the current price.
This is not a small amount in itself, but when we consider the size of the entire Bitcoin market capitalization, these currency inflows hardly carry much weight. So even if the miners plan to sell these coins, the market should be able to absorb the pressure just fine.
Miners are entities that have constant operating costs in the form of electricity bills, so they are usually regular sellers. Typically, their sales remain limited, which would make the recent Miner to Exchange Flow value in line with the norm.
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However, the number of individual transfers to exchanges that the miners have made is certainly unusual, so these indicators could be monitored in the coming days, in case more spikes emerge.
BTC price
Bitcoin had crossed the $69,000 level on Sunday, but it appears that its value has fallen back to $68,200 today.
Featured image from Dall-E, CryptoQuant.com, chart from TradingView
Credit : www.newsbtc.com
