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Since May 31st, there has been a noticeable increase in the movement of bitcoin (BTC) from miners to centralized exchanges, as revealed by the data meticulously tracked by blockchain analytics firm Glassnode.

Newly released data from Glassnode reveals that miners or entities responsible for verifying transactions on the blockchain have transferred a substantial amount of 6,671.99 BTC ($174 million) to cryptocurrency exchanges since May 31. Notably, on June 3, miners moved a staggering 2,606 BTC to exchanges, representing the largest single-day volume witnessed in over four years.

The average daily transfers from miners to exchanges over a 14-day period have experienced a significant surge, reaching 489.26 BTC, the highest level recorded since March 2021. Simultaneously, the balance in wallets linked to miners has dwindled by nearly 2,000 BTC within a span of two weeks.

The transfer of coins from miner or investor wallets to exchanges is commonly associated with the intention to sell or convert the coins into cash. Consequently, the heightened movement of coins from miners to exchanges is generally interpreted as a bearish sign.

Nevertheless, the recent transfers represent a mere 1.3% of Bitcoin's 24-hour trading volume, which amounts to $13 billion. Therefore, these transfers seem relatively insignificant in terms of their potential impact on Bitcoin's price.

Moreover, heightened transfers by miners are frequently interpreted as a display of confidence in the future price of Bitcoin. The rationale behind this is that miners' profitability is intricately linked to the price of Bitcoin, prompting them to increase their sales when they believe the market is robust enough to handle additional supply. This can be likened to a central bank of a country with a current account deficit purchasing U.S. dollars in the open market when the greenback is widely available. By doing so, they can accumulate reserves without risking depreciation of their local currency.

Based on data from CoinCryptoUs, the price of Bitcoin is currently maintaining its position within a well-known range, with support at $25,200 serving as a key level that has not been breached.

(Glassnode)