On-chain data shows that miners have recently sent large amounts of bitcoin to spot exchanges, something that could be bearish for the value of the crypto.
Bitcoin miners spot exchange flows have picked up in the past
As told by an analyst at Cryptoquant PostThe latest spike in miner exchange deposits is bigger than any other recent peak.
The relevant indicator here is the “spot exchange flow mean to miners”, which measures the total amount of bitcoins being transferred by miners to spot exchanges.
When the value of this metric increases, it means that the miners have sent a large number of coins to the exchanges. Since these on-chain validators are usually deposited in the spot market for selling purposes, such a trend could prove bearish for the price of BTC.
On the other hand, a low value of the indicator suggests that there are not many transactions taking place from the miner wallet to the centralized exchange wallet. Such a trend can be neutral or bullish for the value of the coin as it means that there is not much selling pressure coming from this group at the moment.
Now, here is a chart that shows the trend of spot exchange flows among bitcoin miners over the past few 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 huge jump in spot exchange flows in the past days.
The past two weeks saw several exchange inflows from miners, each of which was followed by a typically short-term drop in price.
This latest increase in minor spot deposits is significantly higher than any other seen in this period, and it comes as the price has already dropped. This is in contrast to the previous one, which came about due to the peak of the price.
These fresh deposits are also likely to have a bearish effect on Bitcoin if the trend similar to previous miner exchange flows happens this time too.
At the time of writing, bitcoin price is floating around $20.1k, up 4% over the past seven days. In the past month, the crypto has lost 17% in value.
Below is a chart showing the coin’s price trend over the past 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
Credit : www.newsbtc.com