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- BTC miners transfer over $174 million in Bitcoin.
- The transfers from miners have seen an increase since May 31.
- The 14-day average of BTC movement by miners is 489.26 BTC.
As reported by blockchain analytics company Glassnode, there has been a rise in the transfer of bitcoin (BTC) from miners to centralized exchanges since May 31.
Data indicates that miners, or those who generate coins by validating transactions on the blockchain, have sent a total of 6,671.99 BTC ($174 million) to exchanges during this timeframe. On June 3 alone, miners transferred 2,606 BTC to exchanges, representing the highest single-day amount in more than four years.
Bitcoin miners transfer millions in BTC
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The 14-day average of miner transfers to exchanges has significantly increased, reaching 489.26 BTC, the highest figure since March 2021. At the same time, the balance in wallets linked to miners has declined by roughly 2,000 BTC over a two-week period.
Traditionally, the transfer of coins from miner or investor wallets to exchanges is often viewed as a signal to sell or liquidate the coins. Therefore, the uptick in transfers from miners to exchanges is typically interpreted as bearish.
Nonetheless, it is important to highlight that these recent transfers represent only 1.3% of Bitcoin’s 24-hour trading volume, which is $13 billion. Consequently, the effect on Bitcoin’s price is not anticipated to be significant.
Moreover, increased miner transfers are frequently regarded as a sign of confidence in Bitcoin’s price trajectory. The rationale is that miners’ profitability is closely tied to Bitcoin’s price, leading them to boost sales when they believe the market can handle the additional supply.
This strategy is akin to a central bank from a country with a current account deficit purchasing U.S. dollars in the open market when the currency is readily available. By doing so, the central bank can accumulate reserves without jeopardizing the value of the local currency.
Currently, Bitcoin’s price remains within a familiar range above the critical support level of $25,200, according to data.
