Bitcoin miners transferred $174M worth of coins to exchanges in 2 weeks.

According to data collected by blockchain analytics firm Glassnode, the transfer of Bitcoin (BTC) from miners to centralized exchanges has increased since May 31. Glassnode’s data reveals that miners or entities that create new coins by verifying transactions on the blockchain have transferred 6,671.99 BTC ($174 million) to exchanges since May 31. On June 3, miners transferred 2,606 BTC to exchanges, the largest single-day amount in over four years.

The 14-day average of miner transfers to exchanges has risen sharply to 489.26 BTC, the highest since March 2021. At the same time, the balance in wallets associated with miners has decreased by almost 2,000 BTC in two weeks.

The transfer of coins from miner or investor wallets to exchanges is often considered an intention to sell or liquidate coins. Therefore, the increased movement of coins from miners to exchanges is widely perceived as bearish.

However, the recent transfers represent just 1.3% of Bitcoin’s 24-hour trading volume of $13 billion, and they do not appear to be significant enough to have a substantial impact on Bitcoin’s price.

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Furthermore, increased miner transfers are often seen as an indicator of confidence in Bitcoin’s price prospects. The reasoning behind this is that miners’ profitability is closely tied to Bitcoin’s price, so they ramp up their sales when they feel the market is strong enough to handle an increase in supply. This is similar to a central bank of a current account deficit nation buying US dollars in the open market when the greenback is widely available. By doing this, the bank is able to build up reserves without risking local currency depreciation.

Blockchain data shows that Bitcoin’s price is still hovering in a familiar range above key support at $25,200.

Edited by Nelson Wang.