Bitcoin Miners Have Deposited 51,000 BTC to Binance Since October 9: CryptoQuant

Bitcoin miners have moved from HODLers to sellers, and this has historically preceded a radical price and sentiment shift for Bitcoin.

Bitcoin miners ensure that new BTC tokens come into existence. With their role in the Bitcoin ecosystem, they hold a significant amount of the pioneering cryptocurrency in custody.

But when miners begin to sell, history suggests it typically does not end well for the market. According to recent data, these miners may be selling their holdings, evidenced by their activities over the past seven days.

The outflow was the largest Bitcoin miner move since last July, as the capsize adversely impacted market sentiments, including those of miners. 

Sell-Offs or Just Repositioning?

CryptoQuant highlighted that such movements from miners to exchanges suggest they may be selling their Bitcoin holdings.

“They are essentially moving their coins from wallets designed for storage or mining to platforms where they can be easily sold or hedged,” the firm reported on Thursday.

Nonetheless, there is no guarantee of this. CryptoQuant also mentioned that miners may also be moving their bitcoins to Binance to use as collateral for futures contracts or funding purposes. It could also be asset repositioning or purely operational reasons.

However, it has not augured well with Bitcoin when miners start selling. The report emphasized that the transfer signals a sentiment shift from holding to selling for miners, which has historically pressured the price of Bitcoin.

Notably, if these are sell-offs, history suggests they precede a severe price correction for Bitcoin. This signals that Bitcoin could see lower prices in the coming days unless institutional demand cushions these sales.

Institutional Buy Activity Could Remedy Selling Pressure

Meanwhile, CryptoQuant noted that if institutional and retail investors, through ETFs or on-chain activities, amass sizable amounts of the sold miner stash, Bitcoin may not correct further. Such buying activity would offset the selling pressure that additional supply may have brought.

Remarkably, whales are doing just that. Data shows that whales are buying the dip in Bitcoin price, with a new wallet acquiring $110.6 million worth of BTC from Binance earlier today.

Another newly created wallet also bought 465 BTC ($51.4 million) from FalconX today in a parallel transaction, adding to the buying pressure. With the US Bitcoin spot ETFs also recording inflows, the demand for Bitcoin could continue to withstand bearish tests.