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Posted:
- The uptrend in BTCs Miner to Exchange Flow suggested that miners have been selling more and more of their holdings in recent days.
- However, despite the recent price struggles, BTC currency withdrawals have risen.
Bitcoins [BTC] The price fell to a two-month low on August 31 after the Securities and Exchange announced it would extend the deadline for reviewing all Bitcoin Exchange-Traded Fund (ETF) applications.
Read Bitcoin’s [BTC] Price forecast 2023-2024
The SEC’s decision was seen as a blow to hopes that a Bitcoin ETF would be approved in the near future, and it weighed on sentiment in the cryptocurrency market. BTC fell to $25,470, its lowest level since June 16.
As prices fell, miners began to ‘offload’ their coin holdings, records were kept CryptoQuant revealed. An assessment of BTC’s Miner to Exchange Flow based on a 14-day small moving average (SMA) revealed a 35% increase in this metric since August 31.
Source: CryptoQuant
The Miner to Exchange Flow metric measures the amount of BTC flowing from miners to exchanges. When this stat goes up, miners sell more BTC than they mine. This could be a sign that miners are bearish about the price of BTC and want to sell their holdings.
According to the pseudonymous CryptoQuant analyst Largest_dealerIn recent months, BTC’s upward and downward price movements have correlated significantly with instances of miners on the network sending their coins to spot exchanges.
“There has been a remarkable development recently when the benchmark experienced a significant increase, coinciding with the price of Bitcoin hitting the $30,000 mark. Oddly enough, this surge in mining activity has contributed to a significant price reversal, pushing Bitcoin’s valuation to the $25,000 threshold. Subsequently, the metric dipped markedly and hit yearly lows,” the analyst noted.
Aside from the Miner to Exchange Flow metric, other on-chain metrics used to track BTC mining activity, such as Miner Reserve, confirmed the exit of coins from miners’ wallets. According to CryptoQuant, BTC’s Miner Reserve has plummeted since August 29.
This metric measures the number of coins kept in the wallets of connected miners. Its worth indicates the reserve that miners have yet to sell. At the time of writing, this amounted to 1.83 million BTC. Since August 29, miners have sold 14,000 BTC.
Source: CryptoQuant
Some are not that interested in selling
According to a crypto analyst Ali_Charts“for the first time ever, withdrawals of $BTC on the exchange exceed deposits for three consecutive months.”
Source: X (Ali_Charts)
How much is 1.10.100 BTC worth today?
When an asset’s foreign exchange reserve (deposits) decreases, fewer sell-offs occur. In most cases, it often acts as a harbinger of a price rebound.
According to Ali, the rise in foreign exchange withdrawals could be due to investors increasingly opting to keep their assets in personal wallets, reflecting diminished confidence in crypto exchanges and a desire to avoiding potential regulatory challenges in light of recent changes in the US.