- Bitcoin miners to exchange flow spiked by more than 300 percent within the last 24 hours.
- Despite the spike, the crypto has maintained a price above the $13K level, signaling more demand.
The ongoing bullish trend with the largest cryptocurrency by market cap, Bitcoin (BTC), seems to be a strong one. On-chain data today from Glassnode show that Bitcoin miners are cashing out their rewards aggressively. Previous reports show that such an event is often followed by a drop in the crypto’s price. However, Bitcoin’s price still looks strong despite the miners’ deposits to exchanges.
Bitcoin miners are cashing out a big time
As Glassnode, an on-chain analytics platform, shared on Tuesday, the flow of capital from the Bitcoin miners to digital currency exchanges surged significantly in the past 24 hours. The previous value was at 3.137 BTC yesterday. However, it peaked at 12.823 BTC today, as Glassnode disclosed in a chart. This spike represents an over 300 percent increase from the previous record.
📈 #Bitcoin $BTC Miners to Exchange Flow (2d MA) increased significantly in the last 24 hours.— glassnode alerts (@glassnodealerts) October 27, 2020
Current value is 12.823 BTC (up 308.8% from 3.137 BTC)
View metric:https://t.co/8Bnl6PlAY8 pic.twitter.com/npj4qx4qoH
The spike in Bitcoin miners sell-off to exchanges can be attributed to the increasing price of the cryptocurrency, as Bitcoin recently made a new yearly high at over $13,000. Thus, one might say that Bitcoin miners are selling to recover from the expenses incurred during mining. This might also be the reason behind the massive drop in the Bitcoin network hashrate.
BTC price looks stronger
Many people usually speculate that increased transfer of mined Bitcoin to exchanges by miners raises selling pressure in the market, thereby causing a drop in the cryptocurrency price. Judging by this, there is probably a strong demand for Bitcoin, as the crypto has instead, maintain the $13,000 price level.
At the time of writing, Bitcoin is trading at $13,148 on Coinmarketcap. The crypto has a 24 hours trading volume of $30,070,713,862 and a market capitalization of $243,615,120,483. As BTC started the week with such strength, investors expect more increase with each proceeding day. However, the statements are just predictions, as no one can accurately future Bitcoin price.