A further downturn may be coming to Bitcoin BTC/USD with miners increasing their selling pressure amid ongoing downturns caused by the ongoing fallout caused by FTX's bankruptcy.
What Happened: Glassnode data shows that the seven-day moving average netflow of miners' Bitcoin holdings just reached a 22-month negative high of 60.452 BTC leaving their addresses in a single day — worth just short of $1 million at the time of writing.
Miners have a strong influence on the Bitcoin market since they are in control of what is effectively Bitcoin's only source of inflation. Their withholding newly mined coins negates that inflation until they decide to sell.
See Also: Is Bitcoin A Good Investment?
Miners are forced sellers since mining operations require fresh capital to keep running — electricity needs to be paid for and hardware needs often to be changed or repaired. When Bitcoin's price falls, they are forced to sell more of it to keep up with their expenses.
Bitcoin recently returned to levels not seen since late 2020, significantly decreasing the value of the block rewards perceived by miners which caused their holdings to reach a 10-month low of 1,826,408 BTC — worth over $3 billion.
The growing distrust towards cryptocurrency exchanges caused by the fall of FTX recently caused exchange outflows to grow to historical levels. Some $1.1 billion left trading platforms over the last 24 hours.
However, today's Bitcoin exchange netflow is positive, with $145 million flowing into exchanges rather than leaving.
Next: Blockchain Data Reveals That Alameda Accumulated $60M Of Tokens Prior To FTX Listings
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