On-chain data shows that Bitcoin miners have recently received net inflows of about 7,000 BTC. Here’s what this may mean for the asset.
Bitcoin Miner Netflow Has Registered A Large Positive Spike
As an analyst in a CryptoQuant post pointed out, Poolin mining pool seems to have been behind most of the recent inflows. The relevant indicator here is the “miner netflow,” which measures the net amount of Bitcoin entering or exiting the wallets of all miners.
When the value of this indicator is positive, these chain validators are now depositing a net number of coins into their addresses. Such a trend can indicate that the miners are accumulating currently, which can be bullish for the price.
On the other hand, values of the metric below zero imply this cohort is taking coins out of their wallets. The main reason why these investors would transfer their coins away from their addresses is for selling-related purposes. Thus, this kind of trend can have bearish implications for the asset.
Now, here is a chart that displays the trend in the Bitcoin miner netflow over the past year and a half:
The value of the metric seems to have been quite elevated during the past day | Source: CryptoQuant
The above graph shows that the Bitcoin miner netflow has observed a pretty large positive spike during the last day or so. With this sharp rise in the indicator, the miners have received 7,000 BTC in their wallets.
This is quite an extraordinary amount, as no other spike has come close during the last one and a half years. Naturally, if these net inflows indicate that the miners have been buying, the cryptocurrency could feel a bullish boost.
In January, for example, the miners participated in some possible buying, as the netflow registered a significant spike. Following these inflows, the price started its rally.
The quant cautions, however, “It is important to note that having such a large influx of BTC into miners’ wallets does not necessarily guarantee a bullish movement in the price of Bitcoin. Similar situations have occurred in the past where there were significant inflows into miners’ wallets, but the price of Bitcoin subsequently declined.”
The analyst also points out that 99% of these net flows seem to have involved just one mining pool in the sector: Poolin. The chart below shows the trend in the combined holdings of the miners in this pool.
Looks like the metric has spiked recently | Source: CryptoQuant
Since the net Bitcoin inflows are mostly to the wallets of this mining pool, it’s unlikely that they represent the sentiment among the wider mining industry, regardless of whether they are a sign of buying or not.
From the chart, it’s visible that last month, following the local top in the asset’s price, Poolin appears to have sold many coins. These latest inflows seem to have merely taken their holdings back to levels close to those from before this selling.
At the time of writing, Bitcoin is trading around $27,800, up 2% in the last week.
The asset has surged during the past couple of days | Source: BTCUSD on TradingView