On Wednesday, July 20, there was a huge outflow of Bitcoin (BTC) from miners’ wallets. In total, miners transferred nearly 12,000 BTC tokens. The transfer of tokens to exchanges was the highest since May, when the price of this cryptocurrency dropped by almost 50%. Unfortunately, this indicator only talks about the number of tokens transferred, but does not show how many of them were actually sold on exchanges. What it does show, on the other hand, is the pressure on BTC sales among miners. This pressure can affect the price of Bitcoin.
Who are the “miners”?
The process of mining Bitcoin (BTC) involves creating a new block by solving a complex mathematical puzzle. Once that block is “mined,” meaning when that puzzle is solved, it is added to the existing block chain. Digging up more BTC blocks is done by “miners,” which are computers that run in the Bitcoin ecosystem. “Miners” use diggers, which are ASIC chips. In the past, the function of an excavator was simply a computer or a video card.
Why have metrics such as BTC outflows from miners’ wallets and average BTC outflows suddenly changed?
There has been a lot going on in the cryptocurrency markets recently. Let’s not forget The B World conference, which was attended by well-known investor and Tesla creator Elon Musk and Jack Dorsey, the director of Twitter. In the discussion between these two celebrity investors, the topic of the world returning to Bitcoin (BTC) was brought up. Elon Musk spoke positively about the future of this particular cryptocurrency, and promised to start accepting BTC as payment for electric cars at Tesla again.
The second reason for the sharp change in the indicators could be the situation that is currently prevailing in China. The Chinese government is trying to fight Bitcoin mining, and as a result, miners have started to move to other areas of the world, and the hash rate has dropped.
Currently, Bitcoin (BTC) is showing an upward trend. At the time of writing this article, the price of one BTC token has crossed the $38,000 threshold. This presents a huge growth in a short period of time.