Bitcoin poised near $17K as miner outflow hits 11-month low
- Bitcoin miner outflow hits 11-month low with BTC poised near $17,000.
- BTC price has struggled to break higher since a sharp drop in November, with miner capitulation feared.
- Miners' reduced transfers to exchanges is a bullish factor for BTC price.
Bitcoin (BTC/USD) continues to struggle around $17,000 since it traded sharply lower at the start of November amid the FTX implosion.
The benchmark cryptocurrency is currently positioned near $16,826 on major crypto exchange Coinbase, having ticked down from intraday highs of $16,967.
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BTC miner outflow drops to 11-month low
Bitcoin mining is key to the blockchain network and miners switch their equipment on and off depending on variuos factors. Profitability is one of then. And amid the market malaise over the past few weeks, the picture has been one of possible miner capitulation.
But while most Bitcoin holders continue unfazed even with major unrealized losses, on-chain data suggests miners’ sale of BTC reserves has reduced significantly.
A number of Bitcoin miners have filed for bankruptcy in recent months, with fading profit margins and the broader macro market conditions laying bare the cash crisis. The turmoil remains, but data on Bitcoin miner outflow suggests a decrease in the total volume of BTC send from miner wallets.
This also comes as the total number of Bitcoin wallets sending to exchanges dropped to a two-year low.
According to data by on-chain analytics platform Glassnode, the 7-day moving average for miner outflow reached a low of 49.989 BTC on Tuesday 27 December. It’s an 11-month low, with the last time miner outflow was this low being in January 2022. The metric read 50.163 BTC on 12 March 2022.
Outflow refers to when miners’ wallets send mined BTC or purchased coins – which can occur when miners move coins to exchanges or to other wallets. If miners transfer large volumes of coins to exchanges, it’s a potential selling scenario. The action is often bearish for Bitcoin price.
Low volumes suggest a bigger percentage of miners are not looking to sell, which can be bullish for BTC price.