Bitcoin miner outflows have hit a 77-month high despite the overall positive trend in the cryptocurrency market.
According to on-chain analytics firm CryptoQuant, “Miner Outflow” metrics show that Bitcoin outflows from miner wallets have reached levels not seen since August 2017.
- Miner Outflow metrics do not directly determine the amount of money transferred from miner addresses to cryptocurrency exchanges. However, outflows provide a general indicator of sentiment, with rising outflows indicating a decrease in total holdings.
- The outflows occurred during a period when Bitcoin saw massive price movements, especially after the industry scored a historic win with the SEC's approval of 11 Bitcoin spot ETFs in the United States.
- As a result, the prospect of large capital inflows into the Bitcoin market pushed the price of the asset higher and Bitcoin skyrocketed to over $49,000 for the first time in nearly two years.
$BTC Miner Outflow (Total) hits a 77-month high.
Miner Outflow's Definition and Interpretation
https://t.co/5QqFQVhHoy
Live Chart
— CryptoQuant.com (@cryptoquant_com) January 11, 2024
- Meanwhile, Bitcoin's network hash rate has hit another record high of nearly 550 EH/s.
- With hash rates increasing, Bitcoin price remains an important factor in determining how many miners remain in operation. Thus, a decrease in Bitcoin price will unintentionally create more machine shutdowns and the difficulty will adjust lower.
- Major BTC miners are expected to expand operations while maintaining the network and capture the upside potential if the value of the asset increases significantly in the weeks and months following the halving.