Bitcoin (BTC) miners have increased their Bitcoin sales since they started the cryptocurrency rally, according to the crypto metric platform CryptoQuant.
The data show that miners have increased their sales overall in the last two months, and some particularly large exits have led to large increases.
Last month, there were many large BTC outflows from miners’ wallets. In mid-January, there were two major exits, 12,690 BTC ($ 444 million) and 12,570 BTC ($ 450 million). On January 29, miners transferred about 16,600 BTC (about $ 570 million at the time) from their wallet.
Why did miners sell bitcoins?
Standard Hashrate Group CEO Alex Zhao told Decrypt that Bitcoin miners – at least in Asia – are starting to increase their sales as the current bull run picks up in January.
“The consensus of the Asian mining community was that Bitcoin would reach a peak around $ 20,000. For this reason, many miners sold a significant amount of Bitcoin in the range of $ 17,000 to $ 19,000. When Bitcoin’s price hit ATHs in January, many miners continued to sell because they wanted to secure their profits. ”
An increase in the scale of Bitcoin sales by miners could possibly put downward pressure on the price of BTC. However, this depends on whether Bitcoin is either moved to an exchange for sale on the open market or sold to an investor who puts it in a cold storage.
Yesterday, there was a massive increase in exits from Bitcoin miners who reached 7,850 BTC ($ 450 million) on February 21. This came just hours before Bitcoin saw the biggest drop in its history.