A recent analysis by CryptoQuant, a cryptocurrency analysis firm, highlights the significant influence of Bitcoin miners’ selling behavior on its short-term price movements.
The analysis reveals a correlation between the “Flow from Miners to Exchange” metric and Bitcoin’s market price fluctuations.
The “Miner to Exchange Flow” metric measures the volume of coins transferred from miners to spot exchanges, indicating potential selling pressure from miners looking to convert their rewards into cash. The analysis used a 14-day moving average of this metric and compared it to Bitcoin’s price changes in recent months.
The chart showed that price declines, whether minor or significant, consistently align with instances where miners start transferring their Bitcoin holdings to spot exchanges.
However, a noteworthy development occurred recently when there was a substantial increase in this metric, coinciding with Bitcoin’s price touching the $30,000 level again in August. Interestingly, this surge in miner activity contributed to a significant price drop, pushing Bitcoin’s value back down to around $25,000. Following this, the metric decreased significantly, reaching its lowest point of the year.
Nevertheless, analysts suggest there are indications of a slight recovery in this metric, hinting that miner activity may pick up in the coming days. They advise users to closely monitor miners’ behavior and remain vigilant about any increases or decreases in selling activity.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
