MARKETBITCOIN

Increased Selling Pressure? Bitcoin Miners' Recent Wallet Outflows Surge, Holding Change Rate Hits Three-Year High

share
Increased Selling Pressure? Bitcoin Miners

Data shows that the Bitcoin Miner Position Index (an indicator tracking changes in Bitcoin miner holdings) has reached its highest level in three years. This trend indicates that miners seem to be selling Bitcoin on the OTC market or exchanges in recent times.

Miners' Position Index (MPI) Surges

According to data from the blockchain data analysis platform CryptoQuant, the "Miners' Position Index (MPI)" has surged to levels unseen since 2017, indicating that miners may be selling bitcoins off-exchange in over-the-counter (OTC) markets or on exchanges.

The MPI index is used to measure the movement of bitcoins in miners' wallets. A higher value indicates more frequent bitcoin transfers by miners, which also suggests a higher likelihood of selling.

Large-scale Selling by Miners

On December 10, CryptoQuant's on-chain data tracking tool identified two significant bitcoin transactions related to miners. Approximately 800 bitcoins (valued at $14.5 million at the time) were transferred to Binance exchange, while another transaction of 11,852 bitcoins (equivalent to $2.159 billion) was sent to an unknown cold wallet.

Source: Ki Young Ju

According to CryptoQuant CEO Ki Young Ju, while he remains optimistic about bitcoin prices in January next year, he also emphasizes that the selling activity by miners is a notable bearish signal for the short-term trajectory of bitcoin.

"It's clear that miners are selling a significant amount of bitcoins. I'm still bullish, but this is not a good signal in the short term."

Regarding whether the recent decline is caused by miners selling bitcoins, Ki Young Ju pointed out that although the total outflow volume is not significant in the overall market, it has increased significantly compared to recent days. While the recent drop may not be driven by miners, their actions could still impact the short-term price. However, it is fortunate that most bitcoins appear to be flowing into OTC markets rather than cryptocurrency exchanges, which will help alleviate the direct impact of miners' selling on bitcoin prices.

No Need to Worry in the Medium to Long Term

In the medium to long term, concerns about miners' selling may not be necessary as the amount of bitcoins held by miners will decrease over time, while companies like Grayscale, PayPal, Square, and others continue to bring steady buying demand for bitcoin. Additionally, more and more companies and financial institutions are planning to purchase bitcoins or offer services related to bitcoin.

Reportedly, Singapore's DBS Bank has officially announced the launch of a cryptocurrency exchange next week, starting trading services for four cryptocurrencies: Bitcoin, ETH, Bitcoin Cash, and XRP. Furthermore, MassMutual Financial Group in the U.S. has announced purchasing $100 million worth of bitcoins for its general investment account through New York Digital Investment Group (NYDIG).

In recent months, the demand for bitcoin from traditional institutions and companies has been increasing. If this trend continues, it could offset the selling pressure from miners and large bitcoin holders.