On-chain data shows Bitcoin miner Binance deposits have been at elevated levels recently, a potential sign that this group is selling.
Bitcoin Miners Have Sent 71,000 BTC To Binance In November
As explained by an analyst in a CryptoQuant Quicktake post, November has seen the miners send a notable amount of Bitcoin to cryptocurrency exchange Binance. The on-chain metric of interest here is the “Miner to Exchange Flow,” which measures the total number of tokens that wallets connected to miners are sending to a given centralized exchange.
When the value of this metric is high, it means the chain validators are sending large amounts to the platform. Generally, miners transfer to an exchange when they want to sell, so this kind of trend can have a bearish impact on the BTC price.
On the other hand, the indicator being at a low level suggests miners aren’t making that many deposits to the exchange. Such a trend can be a sign that this cohort is choosing to hold BTC, which can naturally be bullish for the cryptocurrency.
Now, here is a chart that shows the trend in the Bitcoin Miner to Exchange Flow for Binance, the largest digital asset exchange by trading volume:
The value of the metric appears to have been high in recent days | Source: CryptoQuant
As displayed in the above graph, the Binance Bitcoin Miner to Exchange Flow has seen spikes of a significant scale in this month so far, particularly concentrated around the post-crash lows.
Given the timing, it’s possible that miners made the transactions to panic sell. In total, these chain validators have transferred 71,000 BTC to the exchange, worth more than $7 billion.
November’s inflows are only a continuation of the trend from October, when miners deposited a total of 200,000 BTC across the month. Miners are entities that need to regularly sell to pay off their running costs in the form of electricity bills, so some distribution from them is normal. The scale at which they have deposited to Binance recently, however, may be worth noting.
The inflows into Binance this month have coincided with a decline in the Bitcoin Hashrate, a measure of the total amount of computing power connected to the network by the miners. This metric may be considered as a gauge for the sentiment among the chain validators.
How the 7-day average value of the BTC Hashrate has changed over the last twelve months | Source: Blockchain.com
Bitcoin miners pushed the Hashrate to a new all-time high (ATH) in October, but the price decline that has followed since, as well as the fact that the network Difficulty has spiked, has forced miners to pull back on their upgrades.
BTC Price
Bitcoin has seen another setback during the past day as its price has retraced to the $101,300 level.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Blockchain.com, CryptoQuant.com, chart from TradingView.com
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