Exciting things are happening behind the scenes of Bitcoin. A negative daily exchange flow always gets people excited, even if the price keeps drifting lower. Some recent spikes in the number of BTC transfers to exchanges by miners paint a fascinating picture of where things may head next.
Miners Send More BTC To Exchanges
It is never entirely surprising to see Bitcoin miners sell off some of their BTC earnings. Running a mining operation is expensive, and bills need to be paid. Whether that is electricity, cooling, maintenance, or otherwise, selling is a necessity sooner or later. Unfortunately, it would appear miners are sending more BTC to exchanges in batches as of late. Several spikes in miner outflow have been detected over the past few weeks.
That in itself is not abnormal either but remains worrisome. CryptoQuant statistics indicate that the amount of Bitcoin sent to exchanges by miners is the highest since November 3, 2020. A significant spike of 98.6171 BTC, even though that amount is neglectable when looking at the bigger picture. When miners provide more liquidity, there is a higher chance of the market continuing its bearish momentum, though.
As the current Bitcoin price momentum remains bearish, one has to wonder what role miners play. Statistics for today are not yet available, yet they may be sending more BTC to exchanges. However, the statistics by Viewbase confirm there is a clear outflow of BTC in the past 24 hours. A decrease by nearly 9.300 BTC is interesting, given the current market circumstances. Unfortunately, it is not sufficient to keep the Bitcoin price above $30,000.
The chat for Bitcoin miner flows shows nothing has changed in recent weeks. More specifically, there are no special “spikes’ to speak of. The miners’ outflow remains relatively flat since mid-April 2021. It makes the inflow to exchanges all the more intriguing, albeit it also shows how little that behavior matters. Miner flows are not the reason for the recent bearish Bitcoin price trend.
Exchange Netflow Needs A Strong Dip
Another crucial metric to keep an eye on is the exchange netflow. If this metric turns positive, there is a substantial influx of liquidity. In recent days, that number has gone down again, which is good to see. However, there has not been a convincing “dip” yet like there was in January 2021. Until that happens, there is likely too much liquidity on exchanges to warrant any upward price momentum.
Things get even more interesting when exploring the Miners’ Position Index, or MPI. It is a ratio depicting the amount of BTC leaving miners’ wallets compared to the one-year moving average. If the value surpasses 2, mist miners are selling BTC. Today, the number is well below -1, indicating miners play no role of importance in the current market trend.
For now, it remains unclear where the Bitcoin price will head next. Of course, anything is possible in the cryptocurrency industry. Turning the bearish momentum around will not be easy, but it remains possible. Bitcoin is, and always will be, a long-term investment game. Any short-term price changes will not matter in the long run, even though it is never fun to watch the price go down day after day.