Bitcoin outflows from miner wallets have spiked, with the majority of coins finding their way onto cryptocurrency exchanges.
The net flow of coins into or out of miner addresses fell to -2,935 BTC on Tuesday to hit the lowest level since June 2019, according to data source Glassnode. To put it another way, miner wallets witnessed the highest outflow of coins for a year.
“There has been a big spike in miner outflows overnight, I’m expecting a whole lot of selling, starting real soon,” popular cryptocurrency analyst Cole Garner tweeted, along with a chart from blockchain analysis firm CryptoQuant showing a big spike in the miner outflow around 10:00 UTC on Tuesday.
However, the Miner’s Netflow Volume does not tell us whether coins have been sent to exchanges for liquidation or sold off in an over-the-counter deal.
However, another metric, which tracks the flow of coins from miner wallets to cryptocurrency exchanges, shows nearly 97% of the total outflow of 2,935 BTC from miner addresses was deposited to cryptocurrency exchanges on Tuesday.
The total 2,844 BTC that went to exchange platforms was the highest since March 26. That’s a major spike: on Monday, only 404 BTC were deposited on exchanges.
With the sudden rise in the number of coins available on exchanges for