Bitcoin Miner Outflows at 11-month High After Market Rejects $30K

The last time Bitcoin miner outflows were this high, BTC crashed from $30,000 to below $19,000 in less than two weeks

article-image

SimpleB/Shutterstock, modified by Blockworks

share

Bitcoin miner outflows have reached their highest point in almost a year as BTC struggles to capture $30,000.

Glassnode’s Bitcoin Miner Outflow Multiple, which tracks the ratio of BTC moved by miners to the amount mined, has reached an 11-month high of 1.104. Back then, BTC was collapsing from a similar valuation to below $19,000.

The outflow metric doesn’t explicitly track funds sent from miners’ addresses to crypto exchanges — which might indicate sales. Still, outflows serve a rough guide for their sentiment: more outflows suggests less holding overall.

Bitcoin has struggled to push and hold above $30,000 for over the past six weeks. BTC is about flat over the day, hovering at $27,680, having slipped around 4.2% across the past five days.

Loading Tweet..

Proof-of-work miners are rewarded with BTC for spending electricity to validate transactions. Higher energy costs, market fluctuations and the need to cover operational expenses could all be contributing to increased outflows

Historically, miner selling pressure is often associated with short-term price corrections, as increased supply on the market can lead to temporary imbalances between supply and demand.

That’s best reflected in outflows’ previous high last year, when bitcoin fell as much as 30% across eight days in June.

Publicly-listed Bitcoin miners are indeed opting to sell more of their mined crypto, as opposed to more stoic holding strategies. 

But Bitfinex in an analyst note cited Bitcoin’s recent hashrate record as reason to be hopeful over the short term, as it signals it “miner confidence in the future value of Bitcoin.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

👨‍⚖️ SBF’s courtroom sequel: Plus, Coinbase’s legal loss was DeFi’s gain

article-image

Public mining companies have been acquiring sites, refreshing machine fleets and diversifying business models in preparation for the event

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago