- Crypto mining platform Poolin recorded the largest outflow of cryptominer wallets in 2 years, with 10,000 Bitcoins.
- This sale could be a way for your miners to move funds to other wallets, finance day-to-day costs, or cover energy costs associated with running a BTC-mining operation.
- Crypto miners have seen profits drop by 80% from the highest levels, while experiencing an increase in mining difficulty, declining Bitcoin prices, and the closure of several crypto mining pools.
The calm before the storm is a popular phrase that fully paints what happened leading up to FTX’s bankruptcy. Cryptocurrencies were showing a slight recovery after another storm, which had been the Terra explosion, until one of the biggest scandals in the history of digital assets broke out. This plunged prices and caused many to question its presence in the industry.
One of the hardest hit markets in the industry were crypto miners. This group on many occasions marks the needle of what will happen in the short term, and their recent movements could be important in the crypto market.
10 thousand BTC come out of crypto miners’ wallets
In a latest report by the world’s most important group of crypto miners poolin, it does not provide a clear picture of what will happen, but it does provide valuable information to consider.
According to the report replicated by CryptoSlate, the largest outflow of BTC to wallets in the last two years was recorded: 10,000 BTC, those that at current prices have a valuation of around $17 million dollars. It is worth noting that the benefits of these decreased by 80% of the historical maximum and is becoming less profitable.
The big question that arises from the miners’ outings is whether they were made to cover daily expenses or to cover the energy costs involved in having a mining farm. And it is that the difficulty of Bitcoin is getting higher and the equipment to keep the “rewards” is very expensive. Not to mention that in 2024 there will be a new halving that will deliver only 3,125 BTC for each block approved to the chain.
Where were the BTCs sent?
The other important question, perhaps more valuable than the previous one, is knowing what the miners will do with the BTC collected. A graph from Glassnode shows that the total Bitcoin transfer volume from miners, sent to different wallets and exchanges, increased sharply to a 2-year high after the 10,000 BTC exit from Poolin.
However it is not clear if the withdrawals are to personal cold wallets or exchange wallets. This point, which may seem minor, is the heart of the matter.
If the BTC goes to cold wallets it is a bullish sign, since the miners are not interested in selling but are accumulating; Otherwise, the trend will be bearish and the price could suffer setbacks again. In the last week it had a growth of 2.55% against 6.54% of ETH.
It is estimated, based on November data, that transfer volumes to exchanges peaked on November 26 at 650 BTC. Since that day, the inflow of money to the main exchanges, read Binance, Coinbase, Kraken or KuCoin, has fallen to 50 BTC per day, which is an average number.
The power of centralized exchanges
Without FTX in the way, which before it filed for bankruptcy moved large volumes of trading and weekly visits, Binance strengthened and took off from the rest. According to the record of Coin Market CapChangpeng Zhao’s “bank” has a volume of $12 billion and more than $15 million weekly visits.
In volume there is none that comes close and Coinbase, with $1.5 billion, is the main competitor; further back are Kraken (570M), KuCoin (417M), Bitfinex (127M) and Bitstamp (161M).
As for visitors, Bybit “fights” with only 3.5 million users. The other big ones mentioned are below one million, except for KuCoin, which is close to almost 2 million.
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