Are you ready for some shocking news? Bitcoin miners are on a selling spree, and it’s not looking good for the crypto market!
Miners Are Dumping Bitcoin: A Cause for Concern?
According to a recent report, Bitcoin miners have been transferring a large number of coins to central platforms, also known as exchanges. This sudden surge in miner exchange inflows could potentially extend BTC‘s price drawdown.
The on-chain indicator that highlights this trend is the “Miner to Exchange Flow.” When the value of this metric is high, it means miners are transferring a large number of coins to exchanges, which generally happens when they want to sell. This kind of trend can be a bearish sign for the asset’s price.
On the other hand, a low indicator value implies that miners may not be interested in selling, as they are only making a low amount of exchange inflows. Such a trend can naturally be bullish for the cryptocurrency.
Check out this chart that shows the trend in the Bitcoin Miner to Exchange Flow over the last few months:
As you can see, the Bitcoin Miner to Exchange Flow has observed a spike in the past day, which suggests that miners have made a hefty deposit to the exchanges. In the last couple of weeks, there have also been other large spikes in the metric, with an interesting commonality between most of them being that they all came after plunges in the asset’s price.
Miners are entities that have to participate in regular selling to sustain their operations, as they have constant running costs in the form of electricity bills. Most of the time, the selling pressure from the cohort is readily absorbed by the market, so the BTC price tends not to see a bearish effect from it.
However, in cases where the selloff is of a particularly notable scale, Bitcoin can indeed feel an impact. “Sustained selling from miners can slow recovery unless absorbed by strong demand,” notes the quant.
BTC Price
Bitcoin briefly fell under the $77,000 mark during yesterday’s plunge, but the coin has since seen a rebound as its price is now back at $80,700.
So, what does this all mean for the future of Bitcoin and the crypto market? Only time will tell, but one thing’s for sure: the miners’ recent actions have certainly added some drama to the crypto world! 😱
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2025-03-12 09:13