$1 billion in bitcoins sent by miners to exchanges; What does this mean for bulls?

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Vladislav Sopov

Bitcoin (BTC) researcher Cau Oliveira explains why we shouldn’t be too afraid of the effects of possible BTC inflows to exchanges

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$1 Billion in Bitcoin (BTC) Added to Selling Pressure? Analyst shares exit metrics from his exploding takeMiners

A massive amount of value being moved by Bitcoin (BTC) miners to centralized exchanges should not necessarily be interpreted as adding selling pressure to the premier cryptocurrency. Instead, it can be seen as a hedge to support trading strategies, says a veteran on-chain analyst.

$1 Billion in Bitcoin (BTC) Added to Selling Pressure? The analyst shares his point of view

Since June 15, 2023, miners are massively withdrawing their assets from stock exchanges. A total of 33,860 BTC were sent to derivatives exchanges. These stats shared by analyst Cau Oliveira were featured in today’s CryptoQuant Quicktake newsletter.

However, around 8,000 Bitcoins (BTC) disappeared permanently from the miners’ wallets. Generally, this can be seen as a major addition to the selling pressure on the first cryptocurrency and a major bearish sign.

At the same time, Oliveira noted that only a tiny fraction of these Bitcoins (BTC) are transferred to spot trading platforms. In large part, they found their way to derivatives exchanges.

This, in turn, could confirm that BTC miners are not ready to sell their wealth in the market at current prices:

This could indicate that miners may be using their newly minted coins as collateral in derivatives trading activities. A good example of this type of trading is known as “hedging”, which uses bets in the direction opposite to the market consensus.

As such, the effects of this massive outflow on the price of Bitcoin (BTC) should not be overstated from a short-term perspective.

Exit measures for minors explode

As covered by U.Today previously, in recent days miners are aggressively withdrawing funds from exchanges. Yesterday, June 27, 2023, Glassnode analysts spotted a whopping $128 million outflow in a single trade.

Miners have grown nervous amid heightened regulatory uncertainty triggered by the US SEC’s attack on Binance (BNB) and Coinbase, two of the biggest exchanges.

At the same time, the markets have already ignored the effects of this mid-June panic. The price of Bitcoin (BTC) soared 25%, while the crypto’s net market capitalization increased by 14.62%.

At press time, Bitcoin (BTC) is changing hands at around $30,264 on major spot exchanges.

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