On-chain data shows that miners have recently sent large amounts of bitcoin to identify exchanges, something that could hurt the crypto’s value.
The number of bitcoin miners to earn money has increased over the past day.
As noted by an analyst in a CryptoQuant post, the recent increase in the miner’s deposits is greater than any recent peak.
The relevant indicator here is “miners to exchanges flow average”, which measures the total amount of bitcoins exchanged by miners to exchanges.
The higher the value of this metric, the more coins miners have sent to exchanges. Since these chain validators often enter the markets for selling purposes, this type of trend could be bearish for the price of BTC.
On the other hand, the low price of the applicant suggests that there have not been many transactions from the mining wallet to the central exchange wallet. This type of trend indicates that there is not much selling pressure coming from this group at the moment, so the price of the coin could be neutral or massive.
Now, here is a chart showing the trend in Bitcoin miners identifying the exchange flow average over the past two weeks:
The hourly value of the metric seems to have been quite high in recent days | Source: CryptoQuant
As you can see in the graph above, Bitcoin miners have seen a significant increase in the last day to identify the exchange.
In the past two weeks, there have been several exchange flows from miners, after each of which the price has generally shown a short-term decline.
This recent increase in deposits at the mining site is the largest of any seen in this period, and comes at a time when prices are already falling. This is different from the previous ones as the price was on the high side.
If the same trend as the previous mining exchange flow follows this time as well, these fresh deposits could have a negative impact on Bitcoin.
At the time of writing, the price of Bitcoin is hovering around $20.1k, up 4% over the past seven days. In the last month, the price of crypto lost 17%.
Below is a chart showing the trend in coin prices over the last five days.
Looks like the value of the crypto plummeted down a few days back and has since moved sideways | Source: BTCUSD on TradingView
Featured image from Brent Jones on Unsplash.com, charts from TradingView.com, CryptoQuant.com