Bitcoin miners send less BTC to exchanges since 2020 halving despite FTX

2 years ago

Bitcoin (BTC) miners whitethorn beryllium sending much BTC to exchanges this period — but overall, their income person crashed since 2020.

Data from on-chain analytics level CryptoQuant confirms that regular miner transfers to exchanges person decreased by 2 thirds oregon more.

Miners chill BTC speech income aft FTX spike

After BTC/USD mislaid 25% successful days past week, existing concerns implicit miner solvency person heightened.

Given their outgo ground and rising hash rate, commentators warned that galore mining participants whitethorn not beryllium capable to marque ends conscionable — artifact subsidies and fees would not beryllium capable to cancel retired expenses, chiefly electricity.

Network fundamentals, however, archer a funny communicative — hash complaint continues to ellipse all-time highs and not autumn significantly, indicating that astatine slightest definite miners are maintaining web hashing power, not shutting down operations en masse.

CryptoQuant meantime shows that connected a regular basis, miners are not desperately selling coins to screen the shortfall successful revenue.

On Nov. 8, the time of the FTX blowout, flows from miner wallets to exchanges totaled 1,300 BTC. This was the largest single-day tally since September.

Overall, the play of the FTX debacle has seen comparatively humble summation successful selling compared to different spikes this year. Miners sent 4,540 BTC to exchanges connected Sep. 2, portion connected June 22, astir the clip that BTC/USD dipped to past two-year lows of $17,600, the day’s full was 5,729 BTC.

Zooming out, the representation becomes adjacent much nuanced.

Since Bitcoin’s past artifact subsidy halving lawsuit successful May 2020, miners person importantly reduced their regular speech sales.

Around the clip of the halving, the seven-day moving mean of miner speech deposits was astir 1,200 BTC per day.

The fig varied importantly from time to day, but overall, what is considered a spike successful November 2022 was modular signifier astatine the time.

Fast guardant to October this year, and connected immoderate days, miners sent nether 100 BTC to exchanges.

The artifact subsidy whitethorn person halved and fees whitethorn relationship for little gross successful USD terms, but nevertheless, a wide inclination is evident erstwhile it comes to speech sales.

Put different way, the FTX occurrence has produced lone a little divergence successful miner outflows comparative to their one-year moving average. This is summarized successful CryptoQuant’s Miner Position Index (MPI).

A sensation of things to come?

As Cointelegraph reported, Bitcoin miners past experienced "distress" — successful presumption of on-chain information — successful August.

The Hash Ribbons indicator, which is specifically designed to way miner capitulation, has been retired of its reddish portion since then.

So far, thing has managed to unit a instrumentality to wide exiting by miners. This whitethorn yet change, arsenic the latest Hash Ribbons illustration information shows hash complaint tendencies flattening retired aft respective months of growth.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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