Miners sent a total of 210,000 BTC to exchanges in October, with the past week seeing 122,000 coins flow into Binance. These deposits suggest preparation for eventual profit-taking, which could place additional pressure on the price of BTC.
Miners contributed to the selling pressure for BTC by sending a total of 210,000 BTC to exchanges during October. The inflows accelerated significantly in the latter half of the month, with Binance emerging as the preferred exchange. Although BTC remains relatively scarce on exchanges and OTC desks, miners are actively seeking to secure their gains.
The BTC supply on Binance showed increased miner inflows starting from October 16, adding approximately 108,000 BTC to the exchange's balance. This selling activity occurred during a period when mining stock returns outperformed the growth of BTC, as these assets were priced based on their AI computing potential.
Miners Add to General Sell-Off for BTC
The market is now tasked with absorbing up to $10 billion worth of BTC. Exchanges have experienced multiple inflows, including whale-sized deposits exceeding 10,000 BTC on certain days.
These deposits coincided with BTC's decline from a peak above $126,000. In early November, BTC exhibited further bearish signs, sliding to $107,401.
Reported miner reserves stand at 1.89 million BTC, a decrease from over 2 million coins held in the past year. The increased miner selling may be linked to the recent pivot towards AI data centers, shifting away from mining as the sole source of income.
The current BTC selling follows a period where miners produced coins at a loss, anticipating a more opportune moment to sell. As of November, miners have not experienced distress for several weeks, with no additional hash ribbon indicators signaling concern.
Spot Market Netflows Indicate Buyers Absorbing BTC Deposits
Despite recent market deposits, the overall trend of low exchange reserves persists. BTC is being redirected to new wallets, with evidence of accumulation occurring even during periods of spot selling. However, in the short term, BTC selling can influence the market and trigger liquidations, potentially worsening overall sentiment.
Spot exchanges currently hold over 941,000 BTC, with a consistent downward trend. BTC netflows have been negative for the past month, indicating that the deposited BTC also found buyers, leading to a net accumulation of over $4.5 billion in BTC during October.
Additionally, exchanges recorded over $4 billion in USDT net inflows for October, which could signal preparations for new buying activity and the commencement of a new price cycle.
The BTC market is displaying signs of fear based on recent trading patterns. Nevertheless, there are no indications of panic-selling or capitulation in the spot market, unlike in previous cycles.
Spot markets are gaining prominence as BTC open interest has continued to decline to approximately $32 billion. The absence of a clear directional trend has made derivative markets riskier, prompting a shift towards spot trading.
BTC traders remain cautious, especially after BTC broke down below the 200-day moving average, which stood at $109,000. At this stage, the BTC price is being closely monitored for a potential recovery, while also setting expectations for a possible dip below $100,000.