The Potential Impact of Bitcoin Miner Movements on Price
Bitcoin has once again surpassed the $60,000 mark as the broader market sees a recovery, but a key indicator suggests the potential for another price drop.
Over the last 24 hours, Bitcoin (BTC) has experienced a 2% surge and is presently trading at $60,800. Its daily trading volume has also increased by 30%, reaching $34.8 billion. Bitcoin’s market capitalization currently stands at $1.2 trillion.
According to a recent post by CryptoQuant, the surge in Bitcoin’s price comes as the balances of BTC over-the-counter desks for miners have increased by 71.2% over the past three months, rising from 215,000 to 368,000 BTC. This marks the first time since June 2022 that the BTC over-the-counter desk balances have surpassed the 300,000 BTC mark.
This movement typically occurs when miners seek to sell their holdings in over-the-counter deals rather than on cryptocurrency exchanges. Historical data demonstrates that the last three major spikes in Bitcoin’s over-the-counter desk balances for miners have led to significant selling pressure on Bitcoin and the overall crypto market.
A crypto analyst using the alias @EgyHashX pointed out that “historically, increases in Bitcoin’s over-the-counter desk balances have been associated with declines in Bitcoin prices.” Additionally, data from Santiment reveals that the supply of Bitcoin held by miners has increased by approximately 20,000 BTC over the past month, rising from 2.17 million to 2.19 million coins.
On the other hand, data from market intelligence platforms indicates a rise in retail Bitcoin accumulation. According to Santiment, the net inflow of Bitcoin into exchanges decreased from 6,783 BTC on August 17 to a net outflow of 1,006 BTC on August 22.
Furthermore, the data indicates that the number of coins being sent to self-custodial wallets is currently higher than the number of holders attempting to sell the asset.
The potential impact of these developments on Bitcoin’s price remains uncertain, as it could potentially lead to downward pressure in the near future. Analysts and investors will be closely monitoring these on-chain movements for their potential impact on Bitcoin’s price trajectory in the coming weeks.
In conclusion, the recent surge in Bitcoin’s price may be attributed to the increase in over-the-counter desk balances for miners, but the historical association between such increases and price declines has raised concerns among market participants. As the market continues to evolve, it will be crucial to observe how these on-chain movements unfold and their potential impact on Bitcoin’s price.
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