bitcoin (BTC/USD) continues to struggle around $17,000 as it traded sharply lower in early November amid the FTX explosion.
The benchmark cryptocurrency is currently located near $16,826 on the major crypto exchange. coinbaseTicked below the intraday high of $16,967.
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BTC miner outflow hits 11-month low
bitcoin mining The blockchain is the key to the network and miners turn their equipment on and off based on various factors. Profitability is one of them. And amid the market malaise over the past few weeks, the picture has been one of potential miner capitulations.
But while most bitcoin holders remain unfazed even with large unrealized losses, on-chain data shows that miners selling BTC reserves have decreased significantly.
Many bitcoin miners have filed for bankruptcy In recent months, eroding profit margins and broader macro market conditions exposed the liquidity crunch. Turmoil remains, but data on bitcoin miner outflows suggests a decrease in the total amount of BTC being sent from miner wallets.
It also comes as the total number of bitcoin wallets sent to exchanges fell to a two-year low.
According to Information According to on-chain analytics platform Glassnode, the 7-day moving average for miner outflows hit a low of 49.989 BTC on Tuesday, December 27. This is an 11-month low, the last time miner outflows were this low in January 2022. The metric read 50.163 BTC on 12 March 2022.
Outflow refers to when miners’ wallets send mined BTC or purchased coins – which can happen when miners move coins to exchanges or other wallets. If miners transfer large amounts of coins to exchanges, this is a possible selling scenario. The price action for bitcoin is often bearish.
The low volume suggests that a large percentage of miners are not looking to sell, which could be bullish for the BTC price.
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