Last month, the flagship crypto lost around 17% of its value. Over the past seven days, the price of bitcoin (BTC) has improved by 4%. But, generally speaking, the value of cryptocurrency has fallen. Despite the declining backdrop, mining companies have recently made large cash deposits on crypto exchanges.
A bearish signal for bitcoin (BTC)
Recent on-chain data indicates that bitcoin miners are constantly transferring funds to exchanges. Deposits from mining companies have peaked beyond anything seen in recent times. This can cause a fall in the price of crypto Lighthouse. The situation highlights the indicator “average flow of miners to spot exchanges. This metric measures the total amount of bitcoin funds transferred by these players to centralized exchanges.
When mining companies make a large transfer of BTC to the exchanges, the value of the indicator increases drastically. It turns out that in general, they make transfers to crypto exchanges in order to sell. Thus, the recent deposits in the spot markets could be followed by a sell-off. This can cause a price drop of BTC.
If the metric has a low value, it implies that there are few transactions between the wallets of miners and those of exchanges. This suggests either a neutral trend or an uptrend in the bitcoin (BTC) market.
The average flow from bitcoin miners to exchanges has reached a huge spike in the past 24 hours. And in the past two weeks, there has been some decline in the price of bitcoin (BTC) after each of the miners’ deposits.
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