When the price reaches a new high, the bitcoin miner exits
Bitcoin miners are withdrawing large amounts of their holdings from wallets as the price of the cryptocurrency reaches higher levels.
Digital asset data tracker CryptoQuant revealed that 25,367 bitcoins (BTC) were withdrawn from the mining pool's wallet on November 12, when the asset value reached $88,025. At that time, the total value of BTC was around 2.2 billion dollars.
Bitcoin mining outlet general chart. Source: CryptoQuant
Bitcoin mining output is a statistic that tracks the flow of BTC from mining pool wallets, including transactions from all participants, including each miner.
Realizing profits in preparation for the next cycle
Onchain analyst avocado_onchain explained that miners often realize profits when the market goes up, helping them prepare for the eventual Bitcoin halving, when mining rewards are cut in half. The analyst noted that as Bitcoin reaches new highs, miners are positioning themselves for the next drop, which could explain the recent surge in outflows.
Despite this, Avocado said that despite the potential sell-off earlier, the amount of BTC sold shows that there is still “enough room for further growth in this cycle”, citing indicators of increased participation, such as Bitcoin's high hashrate and the problem of mining, which can be further supported. Higher in BTC prices.
Bitcoin hashrate chart. Source: Coinwarz
Meanwhile, CryptoQuant explained that Bitcoin mining statistics do not necessarily mean that miners are selling their BTC. Miners transfer their assets to external addresses for various reasons.
Possible scenarios for these exits include moving funds to exchanges and potential interest in selling and internal wallet transfers.
RELATED: Bitcoin price could quickly rise to $100K in November – analysts
Bitcoin's rally isn't over yet.
Meanwhile, Ryan Lee, chief analyst at Bitgate Research, said November has historically been the best month for Bitcoin returns. The analyst said in an interview with Cointelegraph that the asset could reach $100,000 before the end of November. If history repeats itself and BTC prices rise as expected, the 14.7% growth will put BTC above $100,000.
Bitfinex analysts highlight that the recent victory of Donald Trump in the presidential race will strengthen the adoption of crypto in the United States. This set the stage for BTC to reach over $100,000 within months.
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