Bitcoin miners’ exchange flow reveals an interesting phenomenon. Since June 15, BTC miners shipped over $1 billion to trading platforms.
The majority of the 33,860 BTC sent to derivatives exchanges, according to CryptoQuant, have been retrieved and returned to private wallets.
However, the reserves held by miners were down by about 8,000 BTC out of which a negligible amount was sent to spot trading markets.
This could be an indication that miners are utilizing their freshly created coins as security for derivatives trading.
Hedging, which employs bets in the opposite direction from the consensus of the market, is a good illustration of this sort of trading, CryptoQuant wrote.
The data platform also surmised that there are lesser chances of selling pressure on BTC’s price as these coins are not going to spot exchanges, despite their high value.
With a 5.5% increase in the previous week, Bitcoin is currently trading at slightly over $30,400. The world’s largest virtual currency has edged up 0.5 percent to $30,527 in the daily index.
Last week, BTC miners send over a whopping $128 million to centralized crypto exchanges. This is more than 300% of their earnings per day.
Given that the price of Bitcoin has been at its highest in months, it might be the perfect moment to withdraw and increase earnings.
Miners typically send BTC proceeds to exchanges in anticipation of cashing out to pay expenses and pocket profits.
Echoing similar sentiment, CryptoQuant co-founder and CEO Ki Young Ju believed that the current price-to-earnings ratio is at an “attractive price for miners to sell.”
Young Ju also suggested the present market is heading into a bull market cycle.
Bitcoin Miners’ Uphill Battle
Additionally, due to the increase in Bitcoin prices over the past week, the profitability of BTC mining, or hash price, has grown marginally. Per HashrateIndex, it is presently $0.076 TH/s [terahashes per second] each day.
While the present prospects may look bright for BTC miners, profitability has fallen more than 30% since July of last year and more than 80% since the high of the 2021 bull market.
Bitcoin miners still have a difficult road ahead of them due to high difficulty levels and nearly record hash rates of 377 EH/s.