After the SEC lawsuit, the cryptocurrency market witnessed significant selling pressure, resulting in sharp declines for Bitcoin and altcoins.
Following these price decreases, Bitcoin (BTC) and altcoins managed to recover slightly. However, Glassnode, a leading on–chain analytics provider, recently released a report that sheds new light on the situation.According to Glassnode, Bitcoin miners have been entering the market at high rates, which could indicate a substantial sell-off.
Across the past week, #Bitcoin Miners have been sending a significant amount of coins to Exchanges, with the largest inflow equal to $70.8M.
This is the 3rd largest inflow on record, -$30.2M less than the peak inflow of $101M recorded during the primary bull market of 2021. pic.twitter.com/w4fNFMcxr4
— glassnode (@glassnode) June 11, 2023
Analyzing on-chain data, Glassnode discovered that miner exchange entries reached an impressive peak value of $70 million. This influx of coins to exchanges has the potential to trigger a downward movement in BTC price.
“In the past week, Bitcoin miners have been consistently sending significant amounts of coins to exchanges, reaching an all-time high of $70.8 million,” stated Glassnode.While this figure represents the third-largest entry recorded since 2021, it still falls short by $30.2 million compared to the peak entry of $101 million during the previous bull market.
Typically, miners deposit their BTC on exchanges when they intend to sell it. Consequently, the rise in miner stock market entries could exert downward pressure on Bitcoin’s price.Glassnode expressed concern that this increase in entries would further exacerbate the decline in BTC’s value.
“Undoubtedly, the recent surge in Bitcoin miners selling at such a high rate could be disconcerting for the market. However, it remains uncertain whether miners will continue selling more BTC in the near future,” emphasized Glassnode.
In conclusion, the report from Glassnode raises a cautionary flag regarding the significant sell-off by Bitcoin miners. While the implications for the market remain uncertain, the data suggests a potential impact on Bitcoin’s price trajectory. Traders and investors should closely monitor the market dynamics to make informed decisions during these volatile times.