It is not necessary to assume that the enormous value transfer from centralised exchanges to Bitcoin (BTC) miners will increase selling pressure on the initial cryptocurrency. Instead, a seasoned on-chain expert argues it might be seen as a hedge to support trading methods.
$1 billion in Bitcoin (BTC) added to selling pressure? Analyst shares his take
Miners have started massively removing their funds from exchanges since June 15, 2023. 33,860 BTC have been transferred in total to derivatives exchanges. The analyst Cauê Oliveira provided these facts, which were highlighted in today’s CryptoQuant Quicktake briefing.
However, some 8,000 Bitcoins (BTC) permanently vanished from miners’ wallets. This is typically regarded as a significant increase in the selling pressure on the first coin and a significant negative indication.
Oliveira further pointed out that just a small portion of these Bitcoins (BTC) were moved to platforms for spot trading. They mostly ended up in derivatives markets.
This might support the theory that BTC miners are not prepared to market-sell their wealth at the going rate:
This might be an indication that miners are utilising their freshly created coins as security for derivatives trading. “Hedging,” which involves placing bets in the opposite direction of what the market is expecting, is an excellent illustration of this kind of trading.
As a result, in the near term, it is important to avoid overestimating the impact of this enormous outflow on the price of Bitcoin (BTC).
Miners’ outflow metrics go through roof
As previously reported by U.Today, miners have recently been actively removing money from exchanges. Glassnode experts discovered a massive $128 million outflow in a single transaction yesterday, on June 27, 2023.
The U.S. SEC attack on two of the biggest exchange providers, Binance (BNB) and Coinbase, caused regulatory uncertainty to rise, which alarmed miners.
The markets have already recovered from the consequences of this panic in mid-June. The price of Bitcoin (BTC) increased by 25%, while the total value of the net crypto market increased by 14.62%.
As of the time of publication, the price of Bitcoin (BTC) on the main spot markets is $30,264.
