Bitcoin’s price has been negatively affected by miners who may have been selling at an historic pace, as revealed by on-chain data. According to on-chain analytics firm Glassnode, miner outflows to exchanges recently hit a peak of $70 million. The “miner inflow to exchanges” is an indicator that measures the total amount of Bitcoin transferred by miners to centralized exchanges. Typically, these validators deposit their BTC to sell on exchanges, so a high trend could have a negative effect on the cryptocurrency’s value. As these inflows have increased, the value of the asset has further declined, having fallen below the $26,000 mark. Coincidentally, this recent price drop could be attributed to the dumping by the miner cohort. Both times when miners sent larger amounts to these platforms occurred earlier this year, while the bull market was in full swing.
It remains to be seen whether these validators will continue to sell more in the near future or put an end to their dumping spree. If they continue to sell, it could be bad news for the market. At the time of writing, Bitcoin is trading at around $25,900, a 3% decline in the last week.