Bitcoin miners have dramatically increased their deposits to cryptocurrency exchanges. This activity could extend the recent price decline, according to new blockchain data.
The spike appears in on-chain metrics tracking funds moving from mining entities to exchange wallets. These transfers typically indicate selling intentions.
"Sustained selling from miners can slow recovery unless absorbed by strong demand," a CryptoQuant analyst noted in a recent report.
The data shows multiple deposit spikes in recent weeks. Most followed significant price drops, suggesting panic-selling among miners during the market downturn.
Bitcoin briefly fell below $77,000 yesterday before rebounding to $80,700. The timing of these deposits raises questions about further price stability.
Miners must regularly sell portions of their holdings to cover operational costs. These expenses include substantial electricity bills and equipment maintenance. Under normal conditions, markets absorb this routine selling without price disruption.
However, larger-than-normal transfers can impact Bitcoin's price trajectory. The current pattern shows miners depositing significant amounts after each price dip, potentially creating additional downward pressure.
The "Miner to Exchange Flow" metric specifically tracks these movements. Recent data reveals unusually high transfer volumes compared to previous months.
Mining operations represent a critical component of Bitcoin's ecosystem. Their selling behavior often provides insight into market sentiment and potential price direction.
Market observers now watch for whether these exchange deposits continue or decrease in coming days. The answer could determine if Bitcoin extends its downturn or finds support at current levels.