Miners shed 210,000 BTC in October

Miners sent a total of 210,000 BTC to exchanges in October, while the past week saw 122,000 coins flow into Binance. The deposits signal a preparation for eventual profit-taking, putting additional pressure on the price of BTC. 

Miners added to the selling pressure for BTC, sending a total of 210,000 BTC to exchanges in October. The inflows accelerated in the past two weeks, with Binance becoming the exchange of choice. While BTC is still relatively scarce on exchanges and OTC desks, miners are trying to lock in gains. 

The BTC supply on Binance indicated increased miner inflows since October 16, adding another 108,000 BTC to the exchange balance. The selling happened during a period when mining stock returns outperformed the growth of BTC, as the assets were priced based on their AI computing potential. 

Miners add to the general sell-off for BTC

The market now has to absorb up to $10B in BTC. Exchanges have received multiple inflows, including whale-sized deposits of over 10,000 BTC on some days. 

The deposits coincided with the BTC slide from a peak above $126,000. In early November, BTC showed bearish signs again, sliding to $107,401.

Reported miner reserves are at 1.89M, declining from over 2M coins in the past year. Miner selling may be connected to the recent pivot to AI data centers, away from mining as the sole source of income. 

The current BTC selling follows a period where miners produced coins at a loss, awaiting a more favorable moment to sell. As of November, miners have not felt distress for weeks, with no additional hash ribbon indicators. 

Spot market netflows show buyers absorb the BTC deposits

Despite the recent market deposits, the overall trend of low exchange reserves continues. BTC is redirected to new wallets, with signs of accumulation even during spot selling. However, in the short term, BTC selling can sway the market and cause liquidations, worsening overall sentiment.

Spot exchanges hold over 941K BTC, with a downward trend. Netflows for BTC are negative for the past month, showing the deposits also found sellers and led to the net accumulation of over $4.5B in BTC for the month of October. 

Additionally, exchanges saw over $4B in USDT net inflows for October, potentially preparing for new buying and a new price cycle. 

The BTC market is showing signs of fear based on recent trading. However, there are still no signs of spot panic-selling or capitulation, as during previous cycles. 

Spot markets are gaining importance, as BTC open interest continued to decline to around $32B. The lack of a clear direction made derivative markets more risky, causing a shift to spot trading. 

BTC traders remain cautious, as BTC broke down below the 200-day moving average at $109,000. At the current stage, the BTC price is closely watched for a potential recovery, while also setting expectations for a dip under $100,000.