Benzinga - Bitcoin (CRYPTO: BTC) miners have transferred over a billion dollars worth of Bitcoin to cryptocurrency exchanges in the past two weeks, apparently not for selling the tokens.
The information on this massive transfer was revealed through a series of tweets from CryptoQuant, which shed light on the activity in the miners' wallets since June 15.
According to the information revealed, there were significant currency outflows from the miners' portfolios, mainly directed toward exchanges.
Interestingly, approximately 33,860 Bitcoin were sent to derivatives exchanges, but it's worth noting that the majority of this amount has since been moved back to the miners’ proprietary wallets.
There has also been a decline of around 8,000 Bitcoin in the reserves held by miners, with only a minor fraction of this amount being sent to spot trading exchanges.
The data suggested miners might be employing their freshly mined coins as collateral in derivatives trading activities.
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One common strategy in derivatives trading is “hedging,” which involves placing bets contrary to the market consensus. This strategy is often used as a safety measure to counterbalance losses in case the market does not behave as anticipated.
What is crucial here is that despite the staggering volume of the transferred Bitcoin, this does not necessarily translate into selling pressure on the market price.
Since most of these coins are not headed to spot exchanges, they are unlikely to impact the market selling pressure.
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