On-chain data shows that Bitcoin miners have recently conducted an unusually immense number of transactions on centralized exchanges.

Bitcoin Miner’s trading exchange rate just saw a surge

As noted by the author of CryptoQuant IT Tech in the recent post on X, the Miner to Exchange transaction rate has been high recently. “Miner to Exchange Transaction” tracks the total number of transfers that Bitcoin wallets associated with a miner make to addresses associated with exchanges.

When the value of this indicator is high, it means that miners are making a immense number of moves to these platforms. Since one of the main reasons why on-chain validators deposit on exchanges is for selling purposes, this type of trend could have a bearish impact on the BTC price.

On the other hand, a low rate means that miners are not making inflows into exchanges, potentially because they plan to hold their coins for a while. Naturally, HODLing from this cohort could be a positive sign for the stock.

Here is a chart showing the trend on Bitcoin Miner in terms of exchange transactions over the last few days:

As shown in the chart above, Bitcoin Miner to Exchange Transactions has seen a immense enhance over the last day, suggesting that miners have just made a immense number of moves to these platforms.

It’s possible that this is a sign of a sell-off from these on-chain validators, but whether this potential sale will actually impact the cryptocurrency depends on the exact scale of the coins involved in the transactions.

The analyst also shared data from an indicator that provides information related to it, called Miner to Exchange Flow:

The chart shows that the value of this indicator also increased with the enhance in the number of Miner to Exchange transactions. At its peak, the indicator reached 225 BTC, which at the current price is equivalent to just under $15.4 million.

This is not a compact sum in itself, but considering the scale of Bitcoin’s total market capitalization, these inflows from the exchange do not matter much. So even if miners plan to sell these coins, the market should be able to absorb the pressure well.

Miners are entities that incur fixed running costs in the form of electricity bills, which is why they are usually regular sellers. Most of the time, their sales remain confined, which makes the recent Miner to Exchange flow figure in line with the norm.

The number of individual transfers to exchanges that miners have made is certainly unusual, however, so it’s worth keeping an eye on these metrics in the coming days in case further spikes occur.

BTC price

Bitcoin broke above $69,000 on Sunday, but today the asset’s value appears to have dropped to $68,200.

Featured image from Dall-E, CryptoQuant.com, chart from TradingView