Bitcoin records the largest miner outflow to wallets in 2‑years

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Min­ers are still fac­ing the worst of the cryp­to market’s tur­moil, with prof­its down by 80% from top lev­els. In the wake of mount­ing capit­u­la­tion pres­sure, the  Poolin mul­ti-asset min­ing plat­form record­ed the sin­gle largest min­er out­flow from wal­lets in 2‑years, involv­ing 10,000 Bitcoins.

Poolin, a pop­u­lar min­ing pool, report­ed­ly wit­nessed the large out­flow,  which reports indi­cate might have been a way for its min­ers to either move the funds to oth­er wal­lets, fund day-to-day costs or cov­er ener­gy costs asso­ci­at­ed with run­ning a BTC-min­ing operation. 

The out­flow comes amidst increas­ing min­ing dif­fi­cul­ty, declin­ing Bit­coin prices, and sev­er­al min­ers clos­ing their busi­ness­es due to the drop­ping prof­itabil­i­ty of the min­ing business.

The Bit­coin Total Trans­fer Vol­ume from Min­ers, a met­ric that shows the amount of BTC sent by min­ers to dif­fer­ent wal­lets and exchanges, rose sharply to a 2‑year high after Poolin’s 10 BTC out­flow. Here is the chart derived from Glassnode of Bitcoin’s lat­est Total Trans­fer Volumes. 

miner outflow to exchanges
Source: Glassnode

Despite pre­vi­ous weeks record­ing the high­est min­er capit­u­la­tion, the above data does not nec­es­sar­i­ly reflect min­er sell­ing but could inter­pret as min­ers mov­ing their coins to oth­er wallets. 

BTC miner outflows going to cryptocurrency exchanges

Bit­coin min­ers’ actions have usu­al­ly reflect­ed the sen­ti­ments of the over­all cryp­tocur­ren­cy mar­ket since much of the sell­ing occurs as min­ers pro­tect them­selves from loss­es due to plum­met­ing prices. 

How­ev­er, the above met­ric fails to clar­i­fy whether the coins have been sent to exchanges for fast liq­ui­da­tion or wal­lets for cus­to­di­al stor­age. The good news is there was anoth­er met­ric to gauge the amount of BTC min­er out­flows going to cryp­tocur­ren­cy exchanges. 

Accord­ing to data from Novem­ber, trans­fer vol­umes to exchanges hit the high­est on Nov.26 at 650 BTC. The sud­den increase in trans­fer vol­umes to exchanges showed when Bitcoin’s mar­ket became vul­ner­a­ble. How­ev­er, the vol­umes have since fall­en and are lying below the 50BTC lev­el per day. 

miner outflow to exchanges
Source: Glassnode

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