Cross-chain data shows that Bitcoin miners have deposited large sums on derivatives exchanges recently, suggesting that network auditors may hedge against a possible fall in the future.
Bitcoin mining has shifted to derivative exchanges recently
As pointed out by an analyst at CryptoQuant MailAbout 4.3 thousand bitcoins have exited from miners’ reserves in the past two weeks.
The “miner reserve“It is an indicator that measures the total amount of bitcoin currently stored in the wallets of all miners.
When this metric increases in value, it means that miners are moving coins into their wallets at the moment. Such a trend, when it lasts for a long time, could be a sign of accumulation from miners, and therefore could be bullish for the price of the cryptocurrency.
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On the other hand, a low value of the index indicates that miners are withdrawing their coins at the moment. Depending on where the conversion is, it could be neutral or bearish for BTC price.
Now, here’s a chart showing the trend in bitcoin miner reserves over the past few weeks:
Looks like the value of the metric has been going down recently | Source: CryptoQuant
As you can see in the chart above, bitcoin miners’ reserves have declined in value over the past two weeks.
These withdrawals from miners’ wallets amounted to about 4.3 thousand bitcoins in total. The graph also contains data for two other indicators, the second (bottom graph) only showing net flow, which is simply a measure of the net movement around miners’ portfolios (which naturally equals the decline in reserves for this period).
The middle graph contains curves for miner flow to it Derivatives exchange and its flow to determine the exchanges. It appears that most transfers during this period are not identified, but derivatives.
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This may indicate that miners have withdrawn these coins to hedge their positions against any potential declines in the price of Bitcoin, not to sell them.
If this is indeed the intention of miners, the recent decline in their reserves may not be bearish in relation to the value of the coin.
At the time of writing this report, Bitcoin price It is floating around $21.7K, up 13% in the past seven days. Over the past month, the cryptocurrency has lost 28% of its value.
Below is a chart showing the trend in the currency price over the past five days.
The value of the crypto seems to have observed some upwards movement over the last couple of days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com