A Twitter post reposted by the on-chain market analysis platform, CryptoQuant, shows that Bitcoin miners have moved over $1 billion in BTC to exchanges since June 15. The report said that 33,860 BTC were sent to derivative exchanges. Even though most of those coins are back in proprietary wallets, it is an indication that miners are using their newly minted bitcoins as collateral in derivative trading.
The analysts said that these coins are used in “hedging” and do not represent selling pressure on the general Bitcoin market because they’re not going to spot exchanges.
“A good example of this type of trading is known as “hedging”, which uses bets in the opposite direction to market consensus,” said the report.
Data from Glassnode shows that miner to exchange outflow reached a five-year high in the past week. The June 18 report said that despite moving thousands of BTC to exchanges, Bitcoin miners still held 1.829 million bitcoins valued $49 billion.
Bitcoin is currently trading $30,393 according to data from Coinmarketcap. The coin is up by less than 1% on the daily and weekly chart.