On-chain data shows Bitcoin miner Binance deposits have been at elevated levels recently, a potential sign that this group is selling.
When the value of this metric is high, it means the chain validators are sending large amounts to the platform. Generally, miners transfer to an exchange when they want to sell, so this kind of trend can have a bearish impact on the BTC price.
On the other hand, the indicator being at a low level suggests miners aren’t making that many deposits to the exchange. Such a trend can be a sign that this cohort is choosing to hold BTC, which can naturally be bullish for the cryptocurrency.
Now, here is a chart that shows the trend in the Bitcoin Miner to Exchange Flow for Binance, the largest digital asset exchange by trading volume:
As displayed in the above graph, the Binance Bitcoin Miner to Exchange Flow has seen spikes of a significant scale in this month so far, particularly concentrated around the post-crash lows.
Given the timing, it’s possible that miners made the transactions to panic sell. In total, these chain validators have transferred 71,000 BTC to the exchange, worth more than $7 billion.
November’s inflows are only a continuation of the trend from October, when miners deposited a total of 200,000 BTC across the month. Miners are entities that need to regularly sell to pay off their running costs in the form of electricity bills, so some distribution from them is normal. The scale at which they have deposited to Binance recently, however, may be worth noting.
Bitcoin has seen another setback during the past day as its price has retraced to the $101,300 level.
