Bitcoin Miners Keep Selling As Outflows Rise Again
On-chain data shows that Bitcoin miners continued to sell as outflows from their wallets increased again.
More than 2,5000 BTC flows from the stash of Bitcoin miners
As one analyst pointed out in a post on CryptoQuant, Poolin’s BTC miners appear to have sold heavily in the last 24 hours.
“Total Miner Outflow” is an indicator that measures the total amount of Bitcoin outflowing from the wallets of all miners.
When the value of this metric increases, it means that miners are withdrawing coins from their reserves.
Since miners usually withdraw coins from their wallets to resell them on the exchange, such a trend can turn out to be bearish for the price of the crypto.
Related Reading | Public Bitcoin Miners Struggle to Cope with Declining BTC Production
On the other hand, the low output values suggest that the miners have not shown much movement lately. This trend can be neutral or bullish for the value of the coin.
Now, here is a graph showing the trend of Bitcoin miner exits in the last few days:
The value of the indicator seems to have increased recently | Source: CryptoQuant
As you can see from the chart above, the Bitcoin miner output stream has seen high values in recent days.
This may mean that in response to the drop in the price of the coin, miners have sold part of their reserve.
Related Reading | Bitcoin could hit $100,000 by the end of the year, say most fund managers, survey finds
The spike of the last 24 hours was higher than all the previous ones, which shows that the miners are not slowing down their sales yet.
Poolin’s mining pool output stream graph suggests that miners belonging to this pool could be responsible for the largest spikes.
It seems that miners removed large amounts of Poolin’s stash in the last two days | Source: CryptoQuant
At the time of writing, the price of Bitcoin hovers around $20.6k, down 30% in the last seven days. Over the last month, the cryptocurrency has lost 31% in value.
The chart below shows the price trend of the coin in the last five days.
The value of the crypto appeared to be just above the $20,000 mark in recent days | Source: BTCUSD on TradingView
Just a few days ago, Bitcoin witnessed a huge drop in which the price hit $20,000. Since then, the coin has remained above that level.
However, the crypto seems to have moved sideways just above this mark, so it is unclear if the level will hold or if it will start to fall apart.
Featured Image by Donna Ruiz from Unsplash.com, Charts from TradingView.com, CryptoQuant.com
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