A lot of enthusiasts keep an eye on the Bitcoin miner outflow. An increase in this figure can indicate miners are selling their mined rewards and driving the price down. Such an increase is currently taking place, but there is no real reason to panic just yet.
Bitcoin Miner Outflow Rises Again
There are many different ways to interpret published statistics. As far as Bitcoin miner outflow is concerned, it is a rather intriguing example. It depicts how much BTC miners are moving to exchanges to sell in the coming hours and days. An increase in this ratio is often considered to be a bearish signal for the Bitcoin price.
As can be seen in the chart below, the Bitcoin miner outflow has risen significantly yesterday. Going from 37.624 BTC to 56.858 BTC is a 51.5% increase. To some, this may seem worrisome. After all, 19.2 BTC represents over $200,000 but is not an amount that will end the market in a specific direction, though. Bitcoin’s average trading volume sits well above $15 billion.
That being said, it is rather remarkable to see these numbers increase now. Bitcoin is going through a rather solid price increase, seemingly triggering a higher Bitcoin miner outflow. At the same time, the end-of-year holidays are around the corner. It is possible some miners are cashing out funds to cover future expenses. The chart above shows there are several highs and lows regarding the outflow.
Additionally, the current Bitcoin miner outflow isn’t higher compared to a few weeks ago. In fact, it is still well below the levels recorded in September of 2020. During that period, it wasn’t uncommon to see upwards of 90 BTC being transferred. All of this information always needs to be put in its proper perspective first and foremost.
Network Statistics Look Healthy
Keeping an eye on the much bigger picture is always crucial where Bitcoin mining activity is concerned. The current network hashrate continues to hover between 125 exohash and 160 exohash per second.
These are very high levels, and indicative of how the network has evolved throughout 2020. With such a high hashrate, it is not abnormal to see the Bitcoin miner outflow rise accordingly. All of this hardware and associated costs need to be paid for somehow.
As far as overall mining revenue is concerned, things look rather decent lately. After overcoming a big dip in mid-September, the revenue is creeping up ever so slowly. On average, this revenue has remained above $9.5 million, based on a 7-day average.
Rest assured Bitcoin miners are still reaping the rewards and transaction fees from their efforts. More revenue leaves more room to spend some of those earnings accordingly.