Analyzing miner-to-exchange flow is critical to understanding market sentiment, especially when assessing whether miners are liquidating or hoarding. Historically, sell orders have been preceded by an increase in the flow of bitcoin to exchanges, often causing prices to decline as selling pressure builds.
On June 3rd, miners moved large amounts of BTC to exchanges, sparking a wide-ranging debate in the market about the source of these flows and their potential impact on the market. Data from Glassnode shows that over 2,606 BTC were transferred on June 3, the most since March 26, 2019. At that point, miners sent over 4,083 BTC to exchanges.
cryptoslate The analysis found that the main driver of the massive outflow was Poolin, one of the largest mining pools in the market. Nearly a third of all bitcoin transferred from miners to exchanges on June 3 can be attributed to Poolin, as the pool moved 853.4 BTC.
The transfer isn’t an isolated incident – it’s a continuation of a trend Poolin started in late May.
Since May 31, Poolin has sent an average of 433.5 BTC to exchanges each day, peaking with a large outflow on June 3. For comparison, the next largest contributor, Foundry USA, moved 45.5 BTC on the same day, maintaining a daily transfer volume of . Between 40 and 50 BTC since late May.
The increase in minor transfers resulted in a sudden increase in the proportion of minor revenue sent to exchanges. cryptoslate The analysis found that on June 3, the 7-day exponential moving average (EMA) of Minor Revenues reached 104.5%.
An EMA is an important financial metric that assigns more weight to recent data, smoothing the data line and revealing the trend more effectively. This EMA value is the highest it has recorded since November 17, 2014, when it peaked at 131.7%.
Bitcoin Price Remains Relatively Stable, Hovering in the Middle May 31 to June 4 at $26,800 and $27,300. The sharp drop on June 5 was a reaction to news about the SEC lawsuit against Binance and Coinbase rather than an increase in exchange selling pressure from miners, as the price rebounded within 24 hours.
This suggests that miners may choose to liquidate their coins through over-the-counter (OTC) methods or maintain them on exchanges in anticipation of more favorable market conditions.