BTC miners move over $174 million worth of Bitcoin.
The movement from miners has witnessed a spike from May 31.
14-day average miner movement of BTC stands at 489.26 BTC.
According to blockchain analytics firm Glassnode, there has been an increase in the transfer of bitcoin (BTC) from miners to centralized exchanges since May 31.
Data reveals that miners or entities responsible for minting coins by verifying transactions on the blockchain have moved a total of 6,671.99 BTC ($174 million) to exchanges during this period. On June 3 alone, miners transferred 2,606 BTC to exchanges, marking the highest single-day tally in over four years.
Bitcoin miners move millions worth BTC
The 14-day average of miner transfers to exchanges has seen a significant rise, reaching 489.26 BTC, the highest level since March 2021. Concurrently, the balance in wallets associated with miners has decreased by approximately 2,000 BTC within a two-week timeframe.
Historically, the movement of coins from miner or investor wallets to exchanges is often interpreted as an intention to sell or liquidate the coins. Consequently, the increased transfer of coins from miners to exchanges is generally perceived as bearish.
However, it is worth noting that these recent transfers account for only 1.3% of Bitcoin’s 24-hour trading volume, which stands at $13 billion. Thus, the impact on Bitcoin’s price is not expected to be substantial.
Furthermore, heightened miner transfers are often seen as an expression of confidence in Bitcoin’s price outlook. The underlying logic is that miners’ profitability is closely linked to Bitcoin’s price, prompting them to increase sales when they perceive a strong market capable of absorbing the additional supply.
This approach resembles the actions of a central bank from a nation with a current account deficit buying U.S. dollars in the open market when the currency is widely available. By doing so, the central bank can build reserves without risking a depreciation of the local currency.
As of now, bitcoin’s price remains within a familiar range above the key support level of $25,200, based on data.