Miners Continue Transfers To Exchanges

On-chain data shows that miners have sent a large amount of bitcoin to monitor exchanges recently, something that could be bearish for the value of the cryptocurrency.

Bitcoin miners discover the flow of exchanges has surged over the past day

As pointed out by an analyst at CryptoQuant MailThe recent rise in mine deposits is greater than any other recent rises.

The relevant pointer here is “Miners to determine the flow of exchanges meanwhich measures the total amount of bitcoin that is transferred by miners to select exchanges.

When the value of this metric goes up, it means that miners have just sent a large number of coins to the exchanges. As the chain validators are usually deposited in the spot markets for selling purposes, this type of trend can be bearish for the price of BTC.

On the other hand, a low index value indicates that there are not many transactions that occur from mining wallets to central exchange wallets. This trend can be neutral or bullish for the value of the currency as it indicates that there is not much selling pressure from this group at the moment.

Now, here is a graph showing the trend for Bitcoin miners to determine the average flow of exchanges over the past two weeks:

Bitcoin miner to determine exchange flow

The hourly value of the metric seems to have been quite high in recent days | Source: CryptoQuant

As you can see in the chart above, Bitcoin miners who monitor the exchange flow have noticed a significant spike over the past day.

The past two weeks have seen numerous exchange flows coming in from miners, and after each of them the price has generally suffered a short-lived drop.

This latest increase in miners’ spot deposits is much larger than any other increase in this period, and it came while the price had already reached Fell. This is in contrast to the previous one, which came when the price was close to the peak.

If it follows the same trend as previous miner exchange flows this time as well, these new deposits are also likely to have a bearish impact on Bitcoin.

BTC price

At the time of writing this report, Bitcoin price It is floating around $20.1K, up 4% in the past seven days. Over the past month, the cryptocurrency has lost 17% of its value.

Below is a chart showing the trend in the currency price over the past five days.

Bitcoin price chart

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

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