Bitcoin miner exits hit a 77-month high despite an overall positive trend in the crypto market.
According to on-chain intelligence firm CryptoQuant, the “Miner Outflow” metric demonstrated the outflow of Bitcoin from mining pool wallets unlike anything seen since August 2017.
- Outflow measurement does not directly monitor funds transferred from miner addresses to crypto exchanges, which could indicate sales. However, outflows provide a general indicator of sentiment, with their increase suggesting an overall reduction in holding.
- The release came at a time when Bitcoin showed significant price movements, especially after the industry scored a historic victory with the SEC’s approval of 11 spot BTC ETFs in the United States.
- As a result, the prospect of a massive influx into the Bitcoin market sent the price of the asset soaring, and Bitcoin soared to over $49,000 for the first time in almost two years.
$BTC Minor exits (total) reach a 77-month high.
Live Chart 👇 pic.twitter.com/0i9xqq3aod
– CryptoQuant.com (@cryptoquant_com) January 11, 2024
- Meanwhile, the Bitcoin network’s hash rate hit another record high in the new year, climbing nearly 550 Exa hashes per second (EH/s). The figure has since stood at just over $511 EH/s.
- With an increased hash rate, the price of Bitcoin remains a crucial factor in determining how many miners remain operational. As such, a drop in the price of Bitcoin would inadvertently result in more machines shutting down the network, and the difficulty would adjust downward.
- Subsequently, the Bitcoin network will adjust as more players exit the mining game, freeing up space for other participants who will continue to mine BTC.
- The largest BTC miners are expected to expand their operations while maintaining the network and capturing upside potential if the asset’s value increases significantly in the weeks and months following the halving.
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