Miners Move to Monetize as Bitcoin Value Skyrockets
Bitcoin (BTC) has been experiencing a bullish run over the past two weeks, firmly standing above the $30,000 mark. This upward trend has seen Bitcoin miners deposit their holdings into crypto exchanges in sizable quantities.
Data Reveals Substantial Miner Outflow
Data sourced from CryptoQuant reveals that BTC miners transferred more than $1.675 billion worth of digital gold, equivalent to 54,000 coins, to cryptocurrency exchanges. This hefty outflow from miners is the first of such magnitude since April when Bitcoin was oscillating between $28,000 and $30,000.
Possibility of Spot Selling Surge
The current miner outflow could potentially instigate an uptick in spot selling, as the BTC to USD open interest (OI) has remained relatively stagnant over the past month, as per CryptoQuant’s data.
Bitcoin’s Market Performance
Amid the significant miner outflow, Bitcoin registered a 1% gain in the past 24 hours, boasting a market cap of over $602 billion. The digital asset, currently trading at $31,030, has seen a 43% rise in its 24-hour trading volume, surpassing the $16 billion mark.
Inflows into Bitcoin Investment Products
In addition to the miners’ activity, Bitcoin investment products have recorded inflows totaling $123 million over the past two weeks, according to a report by CoinShares. The report indicates that BTC represents approximately 98% of all asset inflows in the last fortnight, adding up to nearly $125 million. Over the past month, Bitcoin monthly flows have reached an impressive $284.2 million, demonstrating robust investor interest.
Decline in BTC Inflows to Exchanges
Despite the recent miners’ outflow, a report on July 3 revealed a significant decline in BTC inflows to exchanges, which have dropped by 84% since May 2021. This trend indicates a preference for HODLing Bitcoins in self-custodial wallets, suggesting a shift in market behavior towards long-term investment.
