Bitcoin miners have been sending fewer bitcoins to centralized exchanges prior to the halving event, according to a recent analysis by CryptoQuant. This decrease in miner inflows suggests that investors are preparing for another potential price increase.
Last month, the company reported a transfer of 374 Bitcoin to exchanges, marking a notable decrease from the prior month’s figure of 1388 Bitcoin. This large-scale movement of assets from miners and whales to exchanges is typically indicative of selling pressure, which can lead to a decline in Bitcoin’s value.
In contrast, when assets are taken away from exchanges and given to other guardians or the number of miners decreases, this can cause an uptrend in the market. This occurs because miners decrease their sales, contributing less pressure on the market as the Bitcoin halving event gets closer.
Miners Look to Capitalize on Halving Momentum
The Bitcoin halving, which is typically considered a bullish period, brings about unpredictable reactions from miners and investors in the preceding months. Conversely, the 2022 bear market resulted in diminished asset values, causing miners to experience substantial losses.
After Bitcoin ETF approvals boosted the market, miners sold their reserves to recuperate losses and expand operations, resulting in approximately $1 billion moving to exchanges daily. Meanwhile, exchange liquidations amounting to billions have recently occurred, contributing to a drop in Bitcoin’s value.
Before each Bitcoin halving event, if we examine history, miners have tried to cash in on the price increase prior to experiencing a temporary drop in earnings.
Positive Bitcoin Run?
Miners’ outflow levels, noted in the past few weeks, have decreased, leading some analysts to speculate that mining sell-off has lessened and a price increase could follow. Previous sales by miners, representing a market benefit prior to the upcoming halving event, have been recorded.
“Miners may have sold their bitcoin holdings beforehand, which could positively impact the market in the near term. This effect might be more pronounced given the current market anxiety.”
Additionally, according to Coinglass, approximately 4,800 Bitcoin were withdrawn from exchanges within the past 24 hours. This is the greatest amount of BTC withdrawals observed since the beginning of January 2023.
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2024-04-18 21:48