Bitcoin Miner Selling Power Plunges, Green Signal For Price?

On-chain data shows the Bitcoin miner selling power has plunged recently, a sign that could be positive for the crypto’s price. Bitcoin Miner Selling Power Has Plummeted In Recent Days As pointed out by an analyst in a CryptoQuant post, there has been less selling pressure from the miners recently. There are two relevant indicators here, the miner supply and the miner outflow. The first of these, the miner supply, is simply a measure of the total amount of Bitcoin currently sitting in the wallets of miners. The other one, the miner outflow, is a metric that keeps track of the total number of coins that miners are transferring out of their supply at the moment. Now, the “miner selling power” is defined as this miner outflow divided by the miner supply (30-day moving average, log-scaled). When the value of this indicator is high, it means miners are transferring out large amounts compared to their total supply right now. Since miners usually take out their BTC for dumping purposes, this trend can be bearish for the value of the crypto. On the other hand, low values suggest miners are spending relatively little amounts currently. Related Reading: Bitcoin Bullish Signal? Small Investors Show Rapid Accumulation The below chart shows the trend in the Bitcoin miner selling power over the last few years: The value of the metric seems to have taken a plunge in recent days | Source: CryptoQuant As the above graph displays, whenever the Bitcoin miner selling power has reached high values and set a local peak, the price of the crypto has seen some downtrend. This trend makes sense as highs in the metric suggest increased selling pressure from these chain validators. Recently, the indicator again showed such a formation, and BTC reacted with a decline this time as well, as its price went from more than $18,000 to the current $16,000 level. However, since this recent peak, the miner selling power has been rapidly going down and has now set a new low. Related Reading: Bitcoin Selling Pressure Becoming Exhausted? This Metric May Hint So This muted selling pressure from miners may not necessarily be bullish by itself, but it does mean that if Bitcoin shows any bullish momentum now, miners wouldn’t provide any impedance to it for the time being. An interesting long-term trend to notice in the miner selling power chart is that the metric has been on an overall downtrend in the last five years or so. This means that over time, miners have been selling lesser and lesser BTC compared to their reserves, suggesting that they have been accumulating and growing their supply instead. BTC Price At the time of writing, Bitcoin’s price floats around $16,800, up 1% in the last week. BTC continues to display boring price action | Source: BTCUSD on TradingView Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Miners Selling Again, Will Price Crash Again?

On-chain data shows that Bitcoin miners may have once again been participating in selling recently, something that could lead to the asset declining. Bitcoin Miner Reserve Has Been Declining In The Last Two Weeks As pointed out by an analyst in a CryptoQuant post, the BTC miner reserve has been observing outflows recently. The “miner [...]

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Bitcoin Miners Now In Selling Mode For A Year: Should You Be Concerned?

On-chain data shows that Bitcoin miners have been selling for around a year now. Here’s how much they have sold so far. Bitcoin Miners Have Shed Over 4% Of Their Holdings In Past Year As pointed out by CryptoQuant community analyst Maartunn in a new post on X, the BTC miners have been in net selling mode for a significant period of time. The on-chain metric of relevance here is the “miner reserve,” which keeps track of the total amount of coins that the miners as a whole are carrying in their wallets right now. Related Reading: Bitcoin Derivatives Market Heating Up Again: Brace For Impact? When the value of this indicator rises, it means the chain validators are adding a net number of tokens to their combined holdings. Such a trend can be a sign that this cohort is accumulating, which can naturally be bullish for the asset’s price. On the other hand, the metric observing a decline suggests the miners are withdrawing coins from their addresses. The main reason why this group makes such transactions is for selling-related purposes, so this kind of trend can have a bearish impact on BTC. Now, here is a chart that shows the trend in the Bitcoin miner reserve over the past year: As displayed in the above graph, the Bitcoin miner reserve has gone through a steady downtrend during this window. There have been some brief periods of deviation, but the overall trajectory has remained toward the downside. Historically, the miners have had a presence as consistent sellers on the network. The reason behind this is the fact that these chain validators have constant running costs in the form of electricity bills, which they pay off by selling their BTC rewards for fiat. Generally, though, despite being regular sellers, miners don’t pose too much of a threat to the price, as their selling tends to be of a scale that can readily be absorbed by the market. That said, the times that they do participate in a major selloff can be to watch out for. During the start of this year, the Bitcoin miners held a total of 1.99 million BTC in their reserve. Today, the same metric stands at 1.90 million BTC, implying the miners have sold 90,000 BTC (about $9.3 billion at the current exchange rate) or 4.74% of their holdings. Related Reading: Bitcoin Returns Above $100,000 As Monthly Inflows Hit $80 Billion This is a notable amount on its own, but when considering the context that this selling has come over some length of time rather than inside a narrow window, the selloff stops being too interesting. “Miners are offloading steadily, but not in large amounts,” notes the analyst. “This suggests they are likely selling to cover operational costs.” As such, it’s possible that Bitcoin wouldn’t feel any major bearish effects from this miner selloff. The miner reserve could still be to keep an eye on in the near future, however, as any sharp changes in the metric could potentially spell a new outcome for Bitcoin. BTC Price Bitcoin set a new all-time high beyond the $106,000 mark earlier in the day, but the coin appears to have seen a pullback since then as it’s now trading around $104,000. Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com

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Bitcoin Investors Watch Out: Miners Showing Unusual Exchange Inflow Activity

On-chain data shows the Bitcoin miners have been making an unusually high number of transactions to centralized exchanges recently. Bitcoin Miner To Exchange Transactions Metric Has Just Seen A Spike As pointed out by CryptoQuant author IT Tech in a new post on X, the Miner to Exchange Transactions indicator has been high recently. The “Miner to Exchange Transactions” keeps track of the total number of transfers that the miner-associated Bitcoin wallets are making to addresses connected with exchanges. When the value of this metric is high, it means the miners are making a large amount of moves to these platforms. As one of the main reasons why these chain validators would deposit to exchanges is for selling-related purposes, this kind of trend can have a bearish effect on the BTC price. Related Reading: Dogecoin Breaks Away With 9% Surge: Why This Could Trouble Bitcoin On the other hand, the indicator being low implies miners aren’t making inflows to exchanges, potentially because they plan to hold onto their coins for a while. Naturally, this HODLing from this cohort can be a positive sign for the asset. Now, here is a chart that shows the trend in the Bitcoin Miner to Exchange Transactions over the last few days: As displayed in the above graph, the Bitcoin Miner to Exchange Transactions has registered a large spike during the past day, suggesting that the miners have just made a large number of moves to these platforms. It’s possible that this is an indication of a selloff from these chain validators, but whether this potential selling would actually affect the cryptocurrency depends on the exact scale of coins that’s involved in the transactions. The analyst has also shared the data of an indicator that provides information related to it, called the Miner to Exchange Flow: From the chart, it’s visible that this metric’s value has also shot up alongside the spike in the Miner to Exchange Transactions. At its height, the metric touched 225 BTC, which is equivalent to a little under $15.4 million at the current price. This isn’t a small sum in itself, but when considering the scale of the total Bitcoin market cap, these exchange inflows hardly weigh to much. Thus, even if the miners plan to sell these coins, the market should be able to absorb the pressure just fine. Miners are entities that have constant running costs in the form of electricity bills, so they tend to be regular sellers. Most of the time, their selling remains limited, which would make the recent value of the Miner to Exchange Flow in line with the norm. Related Reading: Bitcoin Holders In Profit Hits 95%: Is BTC Overheating? The number of individual transfers to exchanges that the miners have made, however, is certainly unusual, so these indicators could be to keep an eye on in the coming days, in case more spikes pop up. BTC Price Bitcoin had surpassed the $69,000 level on Sunday, but the asset appears to have dropped back to $68,200 today. Featured image from Dall-E, CryptoQuant.com, chart from TradingView

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Bitcoin Bearish Signal: Miners Continue To Sell

On-chain data shows that Bitcoin miners have continued to sell recently, a sign that can be bearish for the price of the cryptocurrency. Bitcoin Miner Reserve Has Been Going Down Since Rally Started As an analyst in a CryptoQuant post pointed out, BTC miners have continued to shave coins off their reserve recently. The “miner [...]

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