Bitcoin miners are moving large amounts of their holdings out of wallets as the cryptocurrency’s price continues its bullish momentum, reaching new highs.
Digital asset data tracker CryptoQuant showed that on Nov. 12, about 25,367 Bitcoin (BTC) flowed out of mining pool wallets as the asset’s price reached $88,025. At the time, the total value of the BTC outflow was around $2.2 billion.
Bitcoin miner outflows is a statistic that tracks outflows of BTC from mining pool wallets, counting transactions from all participants, including individual miners.
Realizing profits in preparation for next cycle
Onchain analyst Avocado_onchain explained that miners typically realize profits when the market is up, helping them prepare for the eventual Bitcoin halving when mining rewards will be cut in half. The analyst noted that miners position themselves for the next downtrend when Bitcoin reaches new highs, which may explain the recent rise in outflows.
Despite this, Avocado said that despite the early potential selling, the volume of BTC sold shows there is still “ample room for further growth in this cycle,” citing Bitcoin’s high hashrate and mining difficulty as indicators of increased participation, which may support a further upside in BTC prices.
Meanwhile, CryptoQuant noted that the Bitcoin miner outflow stat doesn’t necessarily mean miners are selling their BTC. Miners transfer their assets to external addresses for various reasons.
Possible scenarios for these outflows include moving funds to exchanges with the potential intention to sell, as well as internal wallet transfers.
Related: Bitcoin price could fast-track to $100K high in November — Analysts
Bitcoin rally is far from over
Meanwhile, Bitget Research’s chief analyst Ryan Lee said November is historically the best month for Bitcoin’s returns. The analyst said in a Cointelegraph interview that the asset may reach $100,000 before the end of November. Lee said that if history repeats itself and BTC prices increase as expected, 14.7% growth will push BTC above $100,000.
Bitfinex analysts also highlighted that Donald Trump’s recent victory in the presidential race will cause crypto adoption to intensify in the United States. This has set the stage for BTC to surpass $100,000 within months.
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