Analyzing flows between miners and exchanges is crucial to understanding market sentiment, especially when it comes to assessing whether miners are liquidating or accumulating. An increase in Bitcoin flows to exchanges has historically preceded an increase in sell orders, often causing prices to fall as selling pressure builds.
On June 3, miners transferred a massive volume of BTC to exchanges, sparking a market-wide debate about the source of these inflows and their potential impact on the market. Data from Glassnode showed just over 2,606 BTC was transferred on June 3, making it the highest transfer since March 26, 2019. At the time, miners were sending over 4,083 BTC to scholarships.
CryptoSlate The analysis revealed that the main driver of the mass exodus was Poolin, one of the largest mining pools in the market. About a third of all Bitcoin transferred from miners to exchanges on June 3 can be attributed to Poolin, as the pool transferred 853.4 BTC.
The move isn’t an isolated event – it’s a continuation of a Poolin trend that started in late May.
Since May 31, Poolin has sent an average of 433.5 BTC to exchanges each day, culminating with the large outflow on June 3. For comparison, the second largest contributor, Foundry USA, transferred 45.5 BTC on the same day and maintained daily transfer volume. between 40 and 50 BTC since the end of May.
The increase in miner transfers has led to a sharp increase in the proportion of miner earnings sent to exchanges. CryptoSlate The analysis revealed that the 7-day exponential moving average (EMA) of miner earnings to exchanges reached 104.5% on June 3.
An EMA is an essential financial metric that gives more weight to recent data, smoothing the data line and revealing trend changes more effectively. This EMA value is the highest recorded since November 17, 2014, when it reached 131.7%.
The price of Bitcoin has remained relatively stable, hovering between $26,800 and $27,300 from May 31 to June 4. The sharp decline on June 5 was more likely a reaction to news about the SEC lawsuit against Binance and Coinbase rather than an increase in selling pressure on the exchange from miners, as the price rebounded within 24 hours.
This suggests that miners may choose to liquidate their coins via over-the-counter (OTC) methods or hold them on exchanges in anticipation of more favorable market conditions.
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