Today, the bitcoin price is sliding down. Starting the day around $9,650, we started dropping going under $9,300, while the volume remains low around $1.3 billion.
These losses came in the wake of a significant spike in miner outflow last night. On an hourly basis, it was the second-biggest outflow since bitcoin hit $10,000 on May 20, 2020. On that day, 5,665 BTC were transferred from all mining pools, while 3,280 BTC were transferred on June 23rd, as per CryptoQuant.
However, on the basis of a day, on June 23rd, 9,038 BTC worth nearly $87 million has been transferred by mining pools in comparison to 7,425 BTC on May 20 and 6,859 on March 12. The last time bitcoin mining pools transferred such a significant amount of BTC was on December 26, 2019, which was 14.86k BTC.
“I'm expecting a whole lot of selling, starting real soon,” said analyst Cole Garner. And today, we are trading around $9,400 after climbing to $9,800 on June 22nd. He added,
“This is probably an OTC deal since the flows don't appear to be going to an exchange. I'd be more concerned if they were going to an exchange — still, miners moving a lot of coins is never a good sign.”
The mining pools that are responsible for these big outflows are Poolin and HaoBTC and, to some extent F2Pool and BTC.TOP.
One of the biggest mining pools, Poolin, transferred 5,164.5 BTC, an amount not moved by the mining pool in the past six months, at least. HaoBTC moved 2,667 BTC while F2Pool 659 BTC, and BTC.TOP transferred 196 BTC.
However, a similar increase wasn’t seen in crypto exchanges’ balances, which could be because these China-based mining pools could have sold their BTC through alternative ways such as over-the-counter (OTC), which is a prevalent practice in the country.
Yesterday we observed the largest flow of #bitcoin from miners to exchanges in over a year.
— glassnode (@glassnode) June 24, 2020
As we reported, exchanges’ bitcoin balance is actually on a decline, hitting a 1-year low this week, which indicates hodler behavior among investors.
ByteTree data also points to a similar story. Miners are selling more BTC than they are generating for quite some time now.
These outflows came amidst the bitcoin’s 20-day volatility falling to 55.7%, a three-month low “due to the lack of a clear directional bias in the market.”
Bitcoin’s volatility has fallen below oil and emerging currencies. It is now almost on par with the US real estate as the leading digital currency continues ranging since the halving in early May.
However, volatility may pick up as the month-end draws near with $1 billion in BTC options set to expire this Friday.