Bitcoin mining pool BTC.com deposited large amounts of cryptocurrency to Binance in October, on-chain data shows.
BTC.com Mining Pool Potentially Selling Bitcoin This Month
As an analyst pointed out in a CryptoQuant QuickTake post, Bitcoin miners associated with BTC.com have recently made large transactions with Binance. The on-chain metric of interest here is “Miner to Exchange Flow,” which measures the total amount of cryptocurrency flowing from miner-related wallets to a given centralized exchange.
In the context of the present discussion, the version of the metric that is relevant only covers wallets associated with the BTC.com mining pool on the sending side and Binance as the receiver.
Generally, the main reason miners transfer their coins to exchanges is for sales-related purposes, so an increase in exchange flow of miners may indicate that this group is participating in distribution.
Now, here is the chart shared by Quant that shows the trend of exchange flows of Bitcoin miners for BTC.com and Binance over the past month:
The value of the metric seems to have witnessed some notable spikes in recent weeks | Source: CryptoQuant
As shown in the graph above, exchange flows from Bitcoin miners to BTC.com and Binance fluctuated over the past month, with some large spikes occurring in mid-October.
Interestingly, all of these surges occurred around local lows in the asset price, suggesting that miners may have panic-sold part of the pool. In total, this group transferred 186,000 BTC (currently worth a whopping $19.9 billion) to Binance in the last month.
Miners have to pay ongoing operating costs in the form of electricity bills, so distributions from them are regular. Such sales are usually easily absorbed by the market. However, a period of extraordinary selling pressure from the group could be a bearish signal for BTC.
Chain validators are not the only ones participating in the recent sale. As on-chain analytics firm Glassnode pointed out in an X post, long-term holders (LTH), investors who have held coins for periods longer than 155 days, are also on the move.
How the profit volume from the LTHs has changed over the last few years | Source: Glassnode on X
From the chart, it is visible that Bitcoin LTH were generating around $1 billion per day (7-day average) in mid-July, and by the beginning of October, this figure increased to $2 to $3 billion per day.
“Unlike previous high-spending phases in this cycle, this delivery arrangement has been gradual and consistent rather than a sharp increase,” the analytics firm said.
btc price
Bitcoin has suffered a bearish blow during the last 24 hours as its price has fallen by almost 4%.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image from Dell-E, CryptoQuant.com, Glassnode.com, Chart Form Tradingview.com
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