David Pokima
Bitcoin miners have reduced inflow to centralized exchanges leading up to the halving as investors look to another uphill run. A new report from on-chain analytics firm CryptoQuant shows a major reduction in miner flows to crypto exchanges.
According to the firm, last month’s figures totaled 374 BTC to exchanges, a significant from the previous month which hit 1388 BTC. Generally, assets from miners and whales to exchanges signify selling pressure causing a price drop.
Conversely, when assets leave exchanges to other custodians or there are reduced miners inflows, it leads to a positive run in the market. The move by miners to reduce selling pressure comes as the Bitcoin halving fast approaches.
Miners Look to Capitalize on Halving Momentum
The Bitcoin halving is seen as a bullish phase but causes wild movements from miners and traders in the months leading to the event. The bear market in 2022 ushered in weakened asset prices that let miners see significant losses.
The upturn in the market due to spot Bitcoin ETF approvals led to miners selling reserves to gain lost ground and build capacity. About $1 billion flows to exchanges from miner reserves a day after the approval. The market has also seen liquidations from exchanges in the last two weeks plunging the asset’s price.
A historical look in the run-up to the Bitcoin halving shows miners making attempts to capitalize on the price surge before a short-term reduction in revenue.
Positive Bitcoin Run?
Outflows recorded by miners in recent weeks cooled with many analysts pointing to a reduced selling pressure and a possible price rebound. Sales made by miners occurred in previous months which is a gain for the market going into the halving.
“It is possible that the selling pressure has already been executed in advance by miners, something that could benefit the market in the short term, especially when there is already significant pressure on the market due to the feeling of risk aversion.”
Furthermore, data from Coinglass show that in the last 24 hours about 4,800 BTC has been taken off exchanges. These withdrawals from exchanges are the highest since January 2023.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
