As of July 5, Bitcoin miners have sold a whopping $166 billion worth of Bitcoin (BTC) on exchanges in 2023 and 2024, marking a historic high. This sell-off has led to a significant surplus of BTC on exchanges, which could be one of the sources fueling the ongoing market crash.
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Bitcoin miners sell BTC
According to data from CryptoQuant, miners transferred $166.2 billion in BTC to exchanges, while withdrawing only $48 billion, leaving a difference of $118 billion. This trend indicates that miners are selling more BTC than they are holding onto, contrary to their typical behavior of hoarding coins during price dips.
The sudden influx of BTC on exchanges is nothing a spike in potential selling pressure, pushing the price lower. As miners continue to sell, the crypto market is experiencing increased volatility. This unusual behavior from miners is just one of the reasons why the crypto market is crashing. Other key catalysts for the spike in volatility could be the German government selling 1000s of BTC per day, coupled with the Mt. Gox payment news.
Read more: Six Reasons Behind Crypto Market Crash Today: A $1 Billion Meltdown
Regardless, some experts suggest that miners may be realizing profits after the recent price surge, while others believe it could be a sign of decreased confidence in the market. Whatever the reason, one thing is clear: the Bitcoin market is experiencing a significant shift, and the miners’ activity is one of the reasons for the crypto market volatility.
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