On-chain Data Suggests Bitcoin Miners Were Behind The Selloff

On-chain shows that outflows of bitcoin miners have spiked recently, indicating that miners were involved in the recent sell-off that drove the cryptocurrency’s price below $42,000.

Bitcoin mining outflows before the crash soared below $42,000

As pointed out by an analyst at CryptoQuant mailIt appears that Bitcoin miners were one of the sellers behind the price drop to $42,000.

The relevant pointer here is “miner flowwhich measures the total amount of bitcoin wallets outgoing for all miners.

When the value of this metric rises, it means that miners are moving a large number of coins out of their wallets at the moment. This trend could be bearish for the price of the cryptocurrency as it could be a sign of the sinking of these native whales.

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On the other hand, low values ​​of these outflows indicate a normal or healthy selling amount of the miners. This trend, when continued, could prove bullish for the bitcoin price.

Now, here is a graph showing the trend in bitcoin mining flows over the past several months:

Bitcoin mining flows

Looks like the value of the indicator has shot up recently | Source: CryptoQuant

As you can see in the chart above, Bitcoin miners’ outflows appear to have shown spikes in recent weeks, just before the sell-off.

This may indicate that miners seem to have played a role in Foolish Recently, it sent the price of the coin dropping below the $42,000 mark.

Such a trend has been observed several times in the past several months already, and the quantity is also indicated in the chart.

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Currently, it is unclear if the bitcoin miners have actually calmed down or if there will be more selling in the next few days.

BTC price

After about twenty days of holding firmly above the level, Bitcoin price Now again revisiting the $41,000 mark.

At the time of writing, the coin is hovering around $41.1K, down 11% in the past seven days. Over the past month, the value of the cryptocurrency has gained 4%.

The chart below shows the trend in BTC price over the past five days.

Bitcoin price chart

The value of BTC seems to have taken a plunge over the past twenty-four hours | Source: BTCUSD on TradingView

Due to this sharp downward trend in the coin’s price as well as the broader market, cryptocurrency futures have collected quite a bit of liquidation today. The liquidation during the past 24 hours was more than $322 million, $175 million of which was in the past four hours alone.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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