A massive amount of value moved by Bitcoin (BTC) miners to centralized exchanges should not necessarily be interpreted as adding selling pressure to the first cryptocurrency. Instead, it can be viewed as a hedge to support trading strategies, a seasoned on-chain analyst says.
$1 billion in Bitcoin (BTC) added to selling pressure? Analyst shares his take
Since June 15, 2023, miners have been withdrawing their assets from exchanges en masse. In total, 33,860 BTC have been sent to derivatives exchanges. Such statistics shared by analyst Cauê Oliveira were featured in today's CryptoQuant Quicktake bulletin.
However, approximately 8,000 Bitcoins (BTC) disappeared from miners' wallets for good. Typically, this can be treated 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) were transferred to spot trading platforms. Largely, they found their way to derivatives exchanges.
This, in turn, might confirm that BTC miners are not ready to market-sell their riches at current prices:
This could signal 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 opposite direction to market consensus.
As such, the effects of this massive outflow on the Bitcoin (BTC) price should not be overestimated in the short-term perspective.
Miners' outflow metrics go through roof
As covered by U.Today previously, in recent days, miners are aggressively moving funds out of exchanges. Yesterday, on June 27, 2023, Glassnode analysts spotted an enormous $128 million outflow in a single transaction.
Miners became nervous amid the increased regulatory uncertainty triggered by the U.S. SEC attack on Binance (BNB) and Coinbase, two of the largest exchange services.
At the same time, the markets have already shrugged off the effects of this mid-June panic. The Bitcoin (BTC) price spiked by 25%, while net crypto market capitalization added 14.62%.
By press time, Bitcoin (BTC) is changing hands at about $30,264 on major spot exchanges.