Bitcoin Miners Shifting Away from Exchanges, Downward Trend in Miner-to-Exchange Flows

According to the 365-day moving average and the 7-day moving average, there has been an ongoing decreasing trend in the movement of Bitcoin from miners to exchanges. This is demonstrated by the fact that the 365-day moving average. This tendency has been noticed ever since the last bull run, showing that there has been a decline in the quantity of Bitcoin that miners are selling on exchanges.

CryptoQuant reported that the increasing number of over-the-counter (OTC) agreements that miners are participating in is one theory that might account for this reduction. Miners may be turning to over-the-counter (OTC) transactions in order to sell their Bitcoin rather than selling it on exchanges directly. OTC transactions include performing deals directly with purchasers outside of the exchange platforms

This modification to the selling approach could explain why there has been a drop in the amount of Bitcoin moving to exchanges, despite the fact that selling pressure has been maintained in other locations.

In addition, the increasing professionalization of the mining business is likely another factor that has contributed to the decrease in miner-to-exchange movements. Because there are now more well-capitalized mining businesses working in this market, the organizations that mine Bitcoin have less of a need to sell the freshly obtained cryptocurrency right away in order to finance their ongoing expenses. Due to their secure financial situation, they are able to keep their Bitcoin holdings and stand to gain from any possible future price growth.

To prove this fact, Marathon, a major mining business, has exhibited a 20% rise in its Bitcoin holdings from 9,673 BTC in March 2022 to 11,568 BTC in March 2023. This gain occurred from 9,673 BTC in March 2022. However, it is important to take into account that they did sell 600 BTC in April in order to maintain their monthly operations. This demonstrates that even with a planned increase in holdings, there is still some selling activity that takes place.

OTC trades could see a surge

Due to the trend toward the professionalization of mining operations, an increase in the share of OTC trades that are not recorded in the data that is readily accessible to the public may result. This might explain the disparity between the reported reduction in miner-to-exchange flows and the projected growth in OTC transactions. Both trends involve the transit of cryptocurrency from miners to exchanges.

It is plausible to believe that decreased selling pressure from Bitcoin miners plays a substantial role in the lower trend in miner-to-exchange flows. This is despite the fact that other iables contribute to the downward trend in miner-to-exchange flows. The dynamics of Bitcoin flows may continue to fluctuate in the future due to the ongoing evolution of the industry as a whole and the exploration of ious mining tactics by miners.