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Glassnode: Miners have nothing to do with Bitcoin’s recent price drop

The miners’ actions do not explain the drop in the price of bitcoin at the beginning of this week, writes CoinDesk, citing data from the analytical company Glassnode.

For six months, the inflow of bitcoins from miners’ wallets to exchanges has been stable, despite the fact that the price of the cryptocurrency has quadrupled during this time. The only deviation from normal activity was noticed long before the last correction.

Since July 2020, miners have sent an average of 2,100 coins to exchanges per week. The current week is no different in this regard – since Monday, 1,200 BTC have been transferred this way.

“Bitcoin-denominated inflows and outflows through miners’ wallets remain stable, as does the overall volume of transfers,” said Karim Helmi, an analyst at Coin Metrics.

A large withdrawal of bitcoins from miners’ wallets took place from December 26 to 30. During this time, the total balance of funds on such wallets decreased by 1% or 21,000 BTC. While these transfers were taking place, the price of bitcoin rose from $ 26,000 to $ 29,000. Glassnode data indicate that the mentioned coins may have been transferred to third-party wallets, as exchanges received less than 2,400 BTC from miners these days.

However, even if miners immediately sold all bitcoins transferred to exchanges, their transactions would only represent a small fraction of the daily trading volume. So, on December 26, miners sent 1,890 BTC worth about $ 48 million to the exchanges at the exchange rate at that time. This became the largest transfer in one day. On the same day, Binance alone reported over 148,000 BTC in BTC / USDT trading volume. In other words, if the miners sold all the coins sent that day, their transactions accounted for 1.3% of the total trading volume.

At the same time, the leading mining pools are increasing their Bitcoin assets, rather than liquidating them. Thus, the balances of the F2Pool and Lubian pools, the largest in terms of the amount of bitcoins concentrated in wallets, have been growing steadily for eight months.

“I don’t know what addresses they are watching. Possibly false data, “said Poolin CEO Kevin Pan, commenting on speculation about increased sales from miners.

“We know that many of our miners are betting long on bitcoin and only selling a fraction of the mined coins in order to cover costs and manage risk,” said the Slush Pool, adding that the rise in the price of bitcoin allows miners to sell less, since the income from each of the sold coin is growing.

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