Bitcoin Miners Move 700,000 BTC to OTC Desks in 3 Weeks, Here’s What it Means
Bitcoin miners sent a whopping 700,000 BTC to OTC desks in just a few weeks.
Over the past three weeks, around 700,000 BTC have been transferred to over-the-counter (OTC) desks that are commonly used by miners, according to CryptoQuant CEO Ki Young Ju.
Notably, activity has been observed following the approval of a spot Bitcoin exchange-traded fund (ETF).
700,000 BTC Flow to OTC Desks
The movement of such a significant amount of tokens suggests that miners might be preparing to sell or trade their BTC holdings. With spot Bitcoin ETFs approved, miners can seize the chance to utilize their significant BTC reserves to facilitate OTC trades for institutional investors.
700K $BTC has moved to OTC desks used by miners over the past three weeks following spot #Bitcoin ETF approval. https://t.co/beKpUVllNj pic.twitter.com/3F20yAxuX5
— Ki Young Ju (@ki_young_ju) February 22, 2024
This offers them the opportunity to earn substantial transaction fees and potentially secure favorable pricing conditions, especially before the much-anticipated Bitcoin halving slated for April this year.
It also indicates a shift in behavior as miners had paused offloading their tokens after a series of sell-offs as prices rebounded last month.
The latest peculiar miner behavior also comes amidst an increased number of whales entering the market. There has been a notable increase in the volume of UTXOs, ranging between 1,000 to 10,000 BTC, as per CryptoQuant’s data. These sums are more likely associated with whales or institutional investors rather than individual traders, especially since the recent approval of spot Bitcoin ETFs, contributing to a sharp rise.
Though not yet reaching the levels seen in the latter part of the 2021 bull market, it’s clear that a substantial number of whales and institutions are now entering the market.
Bitcoin Holding Behavior
Data revealed that large Bitcoin entities’ holdings have reached a new all-time high since July 2022.
Their holdings have surged from 3.694 million BTC in December 2022 to 3.964 million BTC, signaling a notable increase in demand for Bitcoin investments. This uptick in the holdings of entities with 1K to 10K Bitcoin often aligns with upward movements in market prices.
Currently, Bitcoin is trading a little below $52,000 and clocking around 30% gains over the past month.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Stablecoin Legislation Booms Globally, Why Is China Taking the Opposite Approach? An Article to Understand the Real National Strategic Choices
Amid the global surge in stablecoin legislation, China has chosen to firmly curb stablecoins and other virtual currencies, while accelerating the development of the digital yuan to safeguard national security and monetary sovereignty. Summary generated by Mars AI. This summary is produced by the Mars AI model and its accuracy and completeness are still being iteratively improved.
Liquidity migration begins! Japan becomes the Fed's "reservoir," 120 billions in carry trade returns set to ignite the December crypto market
The Federal Reserve has stopped quantitative tightening and may cut interest rates, while the Bank of Japan plans to raise rates, changing the global liquidity landscape and impacting carry trades and asset pricing. Summary generated by Mars AI. This summary is produced by the Mars AI model, and the accuracy and completeness of its content are still under iterative improvement.
Weekly Hot Picks: Bank of Japan Sends Strongest Rate Hike Signal! Is the Copper Market Entering a Supercycle Rehearsal?
The leading candidate for Federal Reserve Chair is being questioned for potentially "accommodative rate cuts." Copper prices have reached a historic high, and a five-hour meeting between the United States and Russia ended without results. Expectations for a Japanese interest rate hike in December have surged, and Moore Threads' stock soared more than fivefold on its first day... What market moves did you miss this week?
Monad Practical Guide: Welcome to a New Architecture and High-Performance Development Ecosystem
This article will introduce some resources to help you better understand Monad and start developing.
Trending news
MoreCrypto prices
More
