The slight positive market progress seen over the past few weeks has been relatively supportive for Bitcoin miner activity. According to the latest data from the on-chain analysis company CryptoQuantBitcoin (BTC) miners have sent tokens worth over $1 billion to exchanges.
An influx of BTC to exchanges that does not worry analysts
It should be noted that minors who transferred BTC to the exchanges did not necessarily sell them. CryptoQuant reported that more than 33,860 BTC were sent to derivatives exchanges. Subsequently, a large majority of them were rcollected by proprietary wallets.
For CryptoQuant, this means that miners would have used these BTCs as guarantee to carry out derivatives trading operations. Consequently, these BTC should not contribute to create pressure to sell which could theoretically lower the price of cryptocurrency.
Separately, CryptoQuant noted that miner reserve holdings decreased by 8000 BTC. Only a small proportion of these BTCs were liquidated to spot trading platforms.
A record amount of liquidated profits
At the same time, another on-chain analysis company, Glassnodeobserved that the amounts from miners’ income sent to exchanges had reached an all-time high. In a tweet dated June 27, Glassnode noted that $128 million have been transferred to these platforms. This would represent more than 315% of their daily income.
Generally, miners transfer their profits to exchanges to cover their operational expenses. The spikes seen in this metric often occur during bullish cycles when miners decide to take their profits. They can also take place when the markets have bottomed out and miners decide to capitulate to get rid of their holdings (as was the case in 2022).
Such an influx of BTC to the exchanges could cause a reversal in the price progression. This situation may arise if the market is not able to balance this inflow from the supply side by asked corresponding.
In the immediate future, the $31,000 area is a major resistance level for Bitcoin. If the “bulls“(bulls) fail to break this resistance, other losses are possible especially if the miners decide as a last resort to proceed with the liquidation of their assets.
Sources: CryptoQuant, Glassnode