Bitcoin miners are taking advantage of the recent price surge by sending huge amounts of BTC to centralized exchanges. While this is not a new phenomenon, miners tend to sell BTC to finance their operations, the sheer amount being moved to exchanges is alarming.
According to the on-chain data aggregator Glassnode, in the past week, Bitcoin miners have transferred BTC worth $70.8 million to centralized exchanges. This amount represents the third-largest single inflow for Bitcoin miners, measured by dollar value, and is only 30% below the peak of 2021 when BTC hit its all-time high of $69,000.
Interestingly, due to the current price of Bitcoin, miners are moving more BTC in comparison to dollar value. According to Glassnode data, miners moved approximately twice as much BTC as they did in 2021, amounting to the current value of $70.8 million.
Despite the large selling volume apparently coming from miners, Bitcoin holders remain staunch believers in the digital asset. Glassnode reported that long-term holders, those who have held their BTC for more than a year, are still the dominant group and have kept 40.1% of the BTC supply unmoved in the past three years.
However, the BTC price is still under pressure, and bears are in control. Bitcoin bulls have been fighting against bears, but without much success. Therefore, BTC prices continue to face strong downside pressure. Although trading of digital assets is above the $26,000 support, it is still below its 50-day moving average and 100-day moving average, indicating potential further declines.
Nonetheless, the long-term outlook for the cryptocurrency is still positive as BTC is well above its 200-day moving average. With Bitcoin’s halving approaching, the digital asset could very soon enter another bull market.
At the time of writing, BTC is trading at a price of $26,015, up 1.09% over the past 24 hours.
