BlocksInform
Data on the chain shows the output of bitcoin miners jumped, suggesting that the sale of this cohort may be behind the decline of crypto to $20,700.
Data on the chain shows the output of bitcoin miners jumped, suggesting that the sale of this cohort may be behind the decline of crypto to $20,700.
As pointed out by an analyst in a CryptoQuant post, on Wednesday, miners deposited 669 BTC to exchanges. A relevant indicator here is the “miner reserve,” which measures the total amount of Bitcoin that miners as a whole are currently holding in their wallets.
The “miner outflow” is a metric that tells us the total number of coins that these blockchain validators are transferring out of the miner reserve right now. Naturally, the value of the reserve decreases every time the output registers a peak, since an equal or greater quantity of the crypto does not sink inside at the same time.
As a rule, minors withdraw BTCs from their reserves in order to sell them. , minors withdraw BTC from their stockpile for sale.
Thus, every time the outflow of capital registers high values (or alternatively, the reserve observes a sharp fall), this means that this cohort could participate in large quantities of sales at this time.
The value of the reserve seems to have observed significant decline in recent days | Source: CryptoQuantThe stock value appears to have declined significantly over the past few days | Source: CryptoQuant. As the chart above shows, the output of bitcoin miners has seen two very large peaks in recent days.
Related Reading: Asian traders behind most of the recent earnings of Bitcoin, Report reveals. On Wednesday, there was a third peak as well.
It was significantly smaller than the other two. However, there was still something about this release which deserves to be watched. This can be seen in the data for the “miner to exchange flow” metric, which is also shown in the chart.
This can be seen in the metric data "Miner to Exchange Flow", which is also displayed in the graph. Typically, exchanges are what investors use to quickly exchange their bitcoin for altcoins or stablecoins, or simply to retire fiat.
Whereas exits of minors alone can be a sign that there is a certain sale in progress (because these holders can simply use over-the-counter (otc) transactions instead of exchanges), deposits directly in stock exchanges provide more evidence that the sale might be the intention behind the capital outflows.
As some of the third flow was moving towards trade, the first two larger peaks did not appear to have coincided with large deposits to these platforms. Read more: Altcoin Indexs Surperforming Bitcoin, Small Caps Lead Market.
Nonetheless, Only after the first two releases, Bitcoin rally idling at a crawl, and then the third (who went to trade), BTC declined dramatically and reached $20,700.
Looks like BTC has plunged in the past day | Source: BTCUSD on TradingView
