- An assessment of the Miner to Exchange Flow, a 7-day moving average, shows that on September 21st, it reached a weekly peak of 1,343 BTC.
- The Miner to Exchange Flow metric measures the amount of BTC flowing from miners to exchanges. When this metric rises, it means miners are selling more BTC than they are producing.
- According to Glassnode data, there has been a decrease in new demand throughout the week, with the daily count of new addresses first appearing in a transaction on the network dropping by 18%.
While Bitcoin’s price continues to trade in a narrow range, it has been observed that BTC miners are transferring assets to exchanges, indicating a tendency to sell.
Bitcoin Miners Are Moving Their Assets to Exchanges
The total fees paid to complete transactions on the Bitcoin network reached $7 million, the highest level in three months, according to a recent tweet by IntoTheBlock, an on-chain data provider.
The increase in transaction fees prompted miners on the Bitcoin network to liquidate some of their coin holdings in order to profit. An assessment of the Miner to Exchange Flow, a 7-day moving average, shows that on September 21st, it reached a weekly peak of 1,343 BTC.
This suggested that miners were quickly offloading their coins on cryptocurrency exchanges, accompanied by the rise in transaction fees.
The Miner to Exchange Flow metric measures the amount of BTC flowing from miners to exchanges. When this metric rises, it means miners are selling more BTC than they are producing. This often indicates that miners have a bearish sentiment towards BTC’s price and are considering selling what they hold.
BTC Miner Reserves have dropped, confirming a decrease in the amount of coins held in miners’ wallets during the period under review.
After reaching a peak of 1.844 million BTC when the coin briefly traded above $27,000, the Miner Reserves metric saw a decline and according to CryptoQuant data, it dropped to 1.841 million BTC on September 22nd.
Despite a drop in network activity, fees increased.
An assessment of user activity on the leading blockchain network during the period revealed an increase in fees and a decrease in network activity.
According to Glassnode data, there was a decrease in new demand throughout the week, as the daily count of new addresses first appearing in a transaction on the network dropped by 18%. Similarly, the number of unique addresses completing transactions involving BTC also dropped by 12%.
The drop in network activity was seen as a decrease in the number of daily records on the Bitcoin network, as data from Dune Analytics revealed a 53% drop in daily records made on the Bitcoin network.
As of now, the leading crypto asset was trading around $26,560. After briefly surpassing $27,000 on September 19th, the coin retraced to the $26,000 level.
