The launch of Bitcoin exchange-traded funds (ETFs) in the United States has had a direct impact on Bitcoin miners, resulting in a substantial movement of over $1 billion worth of BTC from miner wallets to exchanges within the first 48 hours of trading.
On January 12, the second day of Bitcoin ETF trading, there was a notable surge in BTC outflows from miner-associated wallets to exchanges. Data from Glassnode, as highlighted in Bitfinex Alpha’s market report, indicates that over $1 billion worth of Bitcoin was transferred from miner wallets to exchanges on that day, marking a six-year high in miner outflows.
The trend continued on February 1, with a significant amount of BTC (13,500 BTC) being moved from miner wallets to exchanges. However, on February 2, approximately 10,000 BTC was sent back to miner wallets, suggesting potential wallet rebalancing activities by specific mining companies.
Bitfinex analysts report that a net outflow of 3,500 BTC in a single day represents the highest value of this metric observed since May 2023.
The Bitfinex report notes that on-chain data related to Bitcoin flow from miner wallets has predominantly been negative since the approval of Bitcoin ETFs in the United States. CryptoQuant data estimates that the net outflows from miners total approximately 10,200 BTC.
The reasons behind the BTC outflows from miner wallets are multifaceted. The report cites the necessity for operational liquidity among miners, varying responses to market conditions, and adjustments made following the approval of Bitcoin ETFs. Some miners may have also aimed to capitalize on the price surge in the weeks leading up to the ETF approvals.
In contrast to miners, on-chain data suggests that long-term Bitcoin investors are holding onto their assets and are reluctant to sell at current market prices. The report highlights a decline in supply last active within the one-year and two-year time horizons. This behavior has been closely associated with the Grayscale Bitcoin Trust, indicating that dormant BTC holdings have been either sold or swapped into other Bitcoin ETFs.
The report emphasizes that the movement of older Bitcoin supply is a significant indicator of market behavior, reflecting changing sentiments and strategies among investors in response to Bitcoin ETFs and evolving market conditions.
Despite these movements, a substantial majority of the Bitcoin supply remains tightly held. The persistence of long-term investors holding their positions reflects their continued belief in the future appreciation of Bitcoin.
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