On-chain data shows the Bitcoin miners have continued to make large deposits to exchanges recently, a sign that could be bearish for BTC’s price. Bitcoin Miner Exchange Netflow Has Been Seeing Positive Spikes In a new post on X, CryptoQuant author IT Tech has discussed about the latest trend in the Bitcoin Miner to Exchange Flow vs. Exchange To Miner Flow metric. This indicator measures, as its name suggests, the netflow happening between miner-associated wallets and centralized exchanges. When the value of this metric is positive, it means the miners are depositing a net number of tokens to these platforms. Generally, these chain validators transfer to the exchanges whenever they want to sell, so this kind of trend can have a bearish impact on the asset’s price. Related Reading: Bitcoin Resets With 14% Deleveraging—Here’s What Past Events Led To On the other hand, the indicator having a negative value implies the the miner exchange outflows are outweighing the miner exchange inflows. Such a trend suggests this cohort may be accumulating, which can naturally be bullish for BTC. Now, here is the chart that shows the trend in the Bitcoin Miner to Exchange Flow vs. Exchange To Miner Flow over the last year: As displayed in the above graph, the indicator has been registering significant positive values since the bull rally from the last couple of months of 2024, implying miners have been depositing big to these platforms. The metric has also been flagging some net outflows during this period, but the scale of them has been significantly lesser compared to the net inflows. Given that the deposits started when the rally began, it would appear likely that the motivation behind them was for profit-taking purposes. Recently, though, bullish momentum has seen a cooldown and BTC’s price has declined, but the miner inflows have nonetheless continued. It’s possible that this group is now just panic selling, in fear of a bear market. Miners are entities that regularly participate in distribution, due to the fact that they have constant running costs in the form of electricity bills that they have to pay off somehow. Usually, this selling isn’t of a scale that can’t be absorbed by the market, so Bitcoin doesn’t tend to be affected much by it. In the periods where miner selling is significant, however, BTC can indeed suffer from a bearish setback. Compared to during the rally last year, miner inflows are currently lower, but are of a notable level nonetheless. “If miner selling accelerates, it could introduce short-term volatility into the market,” notes the analyst. Related Reading: Is Bitcoin Peak In? This Data Suggests Otherwise, Analytics Firm Says It now remains to be seen what the Bitcoin miners would do next and whether their potential selling would have any influence on the asset or not. BTC Price At the time of writing, Bitcoin is floating around $83,400, up almost 6% in the last seven days. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
On-chain data shows that Bitcoin miners have been selling for around a year now. Here’s how much they have sold so far. Bitcoin Miners Have Shed Over 4% Of Their Holdings In Past Year As pointed out by CryptoQuant community analyst Maartunn in a new post on X, the BTC miners have been in net selling mode for a significant period of time. The on-chain metric of relevance here is the “miner reserve,” which keeps track of the total amount of coins that the miners as a whole are carrying in their wallets right now. Related Reading: Bitcoin Derivatives Market Heating Up Again: Brace For Impact? When the value of this indicator rises, it means the chain validators are adding a net number of tokens to their combined holdings. Such a trend can be a sign that this cohort is accumulating, which can naturally be bullish for the asset’s price. On the other hand, the metric observing a decline suggests the miners are withdrawing coins from their addresses. The main reason why this group makes such transactions is for selling-related purposes, so this kind of trend can have a bearish impact on BTC. Now, here is a chart that shows the trend in the Bitcoin miner reserve over the past year: As displayed in the above graph, the Bitcoin miner reserve has gone through a steady downtrend during this window. There have been some brief periods of deviation, but the overall trajectory has remained toward the downside. Historically, the miners have had a presence as consistent sellers on the network. The reason behind this is the fact that these chain validators have constant running costs in the form of electricity bills, which they pay off by selling their BTC rewards for fiat. Generally, though, despite being regular sellers, miners don’t pose too much of a threat to the price, as their selling tends to be of a scale that can readily be absorbed by the market. That said, the times that they do participate in a major selloff can be to watch out for. During the start of this year, the Bitcoin miners held a total of 1.99 million BTC in their reserve. Today, the same metric stands at 1.90 million BTC, implying the miners have sold 90,000 BTC (about $9.3 billion at the current exchange rate) or 4.74% of their holdings. Related Reading: Bitcoin Returns Above $100,000 As Monthly Inflows Hit $80 Billion This is a notable amount on its own, but when considering the context that this selling has come over some length of time rather than inside a narrow window, the selloff stops being too interesting. “Miners are offloading steadily, but not in large amounts,” notes the analyst. “This suggests they are likely selling to cover operational costs.” As such, it’s possible that Bitcoin wouldn’t feel any major bearish effects from this miner selloff. The miner reserve could still be to keep an eye on in the near future, however, as any sharp changes in the metric could potentially spell a new outcome for Bitcoin. BTC Price Bitcoin set a new all-time high beyond the $106,000 mark earlier in the day, but the coin appears to have seen a pullback since then as it’s now trading around $104,000. Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com