Are Miners Pushing The Bitcoin Price Further Down?

Are Miners Pushing The Bitcoin Price Further Down?


The Bitcoin price remains under immense pressure and shows no sign of recovering. Part of this bearish trend can be blamed on miners moving BTC to exchanges. Primarily derivatives platforms note a strong inflow, although spot-oriented platforms remain popular as well. 

Miners Keep Dumping Bitcoin

When the BTC price falls and keeps dropping, miners have some tough decisions to make. Recouping some of their costs often requires the liquidation of some mining earnings. For some individuals and companies, the need to sell large chunks can be greater or smaller. What is evident is that more miners are moving funds to exchanges in recent weeks.

Based on data by CryptoQuant, over 900 BTC have flown to exchanges from miners’ wallets yesterday. A substantial increase compared to the 439 BTC the day before. If this amount keeps rising steadily, it seems unlikely the Bitcoin price will note any growth this week. 

BlocDesk Miners BTC Outflow
Source: CryptoQuant

It is not uncommon to see such steep amounts move from miners to exchanges either. In fact, there have been periods with an average of over 1,250 BTC. As the current block reward is relatively low, there’s only so much BTC to be moved on the network. A lower price will also require users to sell more BTC altogether. 

As one would expect, there is a growing BTC inflow across spot exchanges. A substantial increase is visible, culminating in a 300% increase compared to late last week. Why miners are liquidating Bitcoin on regular exchanges is unclear. This may be a sign of collusion to disrupt the bull market.

Derivatives Exchange Inflow Rises

Interestingly enough, Bitcoin miners also move a lot more funds to derivatives platforms lately. Not entirely surprising, as the current Bitcoin price trend is anything but convincing. Placing a short on the market can prove rather lucrative for miners willing to explore that option. 

BlocDesk Miners Derivatives Exchanges
Source: CryptoQuant

All in all, it seems unlikely that the Bitcoin price will recover its lost momentum shortly. The battle for $30,000 is in full effect, yet it seems unlikely this will be a price support level. Instead, a continuation of the downtrend appears more likely, which may require miners to liquidate even more BTC.

There is no al indication as to why the world’s leading cryptocurrency is so bearish right now. Following the push to $40,000, there hasn’t been any positive momentum to speak of. From a neutral point of view, it appears that institutional demand for BTC has disappeared, and regular traders aren’t intent on taking too many risks. 

AO/X Staff
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