Miners Are Still Selling Their Bitcoins , Price Not Withstanding

Miners are still selling bitcoins

Miners are still selling their bitcoins in a bid to keep up with operational costs. This is despite the general belief that big holders mostly hodl their coins.

The market usually keeps a look out for miner- exchange flow since large inflows to the exchanges have a remarkable impact on the price of the cryptocurrency.

Data available from blockchain analytics firm, CryptoQuant, shows that there has been a steady Bitcoin to exchange flow in the past days, even as the price of Bitcoin has vacillated within the $28k-$32k range.

Largest Miner-Exchange Inflow

According to blockchain data, miner to exchange flow peaked on January 30, 2021, at 3,354 coins. In January 2022, the miner-exchange flow peaked on January 28, when 517 bitcoins were sold to the exchanges, when the market price of BTC was $37,739. The miner-exchange inflow peaked on February 24, when 755 bitcoin moved from the miners to the exchanges. This was on a day Bitcoin sold at $38,362.

In March, miner-exchange inflow peaked on March 30, when 514 BTC moved to the exchanges from miners, at a $47,077 BTC price. In April, the inflow peaked on April 1, when 782 bitcoins were moved by the miners. On that day the price of BTC was $46,299.

May Records High for Miner Coin Movement

Last month, the highest number of bitcoins were moved to the exchanges May 12, when 2,549 bitcoins were moved to the exchanges by the miners. On that day, BTC traded at $28,957.

June Miner-Exchange Flow

Miners are selling Bitcoin

On June 1, 775 bitcoins were moved by the miners. On that day, the Bitcoin price was $29,799. On June 2, 358 bitcoins were sold and the price of BTC was higher at $30,464. The next day, 244 bitcoins were sold on June 3 when the price of BTC was $29,673. On June 4, bitcoins sold were 573, at the market price of $29,840. On June 5, when BTC price was $29,957, the miners sold 240 bitcoins. As at the time of filing this report on June 6, 264 bitcoins have been sold by the miners at the market price of $31,534.

The one-month chart shows that the miner-exchange bitcoin flow peaked on May 12. On that day, Bitcoin dropped from $31,006, two days earlier to $28,957, a 6.6% drop in value. However, miners selling their cryptocurrencies is not a very good indicator for the direction of the price, however, big sales such as this does have an impact on price. This is also the view of an analyst, Mr L, who said,

“The miners need money. It will be over soon and is not a reliable indicator of falling prices. As you can see miners don’t always sell at the best prices. That tells me they don’t know what’s going to happen in the future”

 

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.

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