On-chain Data Suggests Bitcoin Miners Were Behind The Selloff

On-chain shows Bitcoin miner outflows have been elevated recently, suggesting miners were involved in the recent selloff that took the price of the crypto below $42k. Bitcoin Miner Outflows Spiked Up Before The Crash Below $42k As pointed out by an analyst in a CryptoQuant post, BTC miners seem to have been one of the sellers behind the price drop to $42k. The relevant indicator here is the “miner outflow,” which measures the total amount of Bitcoin exiting wallets of all miners. When the value of this metric spikes up, it means miners are moving a large number of coins out of their wallets right now. Such a trend can be bearish for the price of the crypto as it may be a sign of dumping from these original whales. Related Reading | Ark CEO Cathie Wood Is As Bullish As Ever, Sees Bitcoin Hitting $1 Million By 2030 On the other hand, low values of these outflows suggest a normal or healthy amount of selling from miners. This trend, when sustained, can prove to be bullish for the BTC price. Now, here is a chart that shows the trend in the Bitcoin miner outflows over the past several months: Looks like the value of the indicator has shot up recently | Source: CryptoQuant As you can see in the above graph, the Bitcoin miner outflows seem to have shown spikes in recent weeks, just before the selloff. This would suggest that miners look to have played a role in the dump recently, sending the price of the coin di...