#BitcoinWhales #BTCMiners #CryptoLiquidity $BTC
The wallets associated with digital mining operations are intensifying BTC transfers to trading platforms such as Binance. By January 6th, approximately 33,000 units of Bitcoin had exited these addresses heading toward the said digital asset exchange, according to a recent report from CriptoTendencia. The current major dilemma is determining whether large investors, known as "whales," have the capacity to absorb this volume of liquidity.
BTC's price recovery may largely depend on whales' ability to absorb the flow of coins coming from miners. There are indicators suggesting an optimistic response to this selling pressure. Among them, the notable movement of stablecoins to Binance stands out.
CryptoQuant data reveals that, after a quarter of reduced flows, stablecoins are now entering centralized exchanges (CEX) with vigor. In the first week of January, approximately $670 million were sent to this platform. This phenomenon strengthens the likelihood that these stablecoins will be used to absorb liquidity resulting from miners' sell-offs.
Thus, whales' interest is being tested after three months of a downward trend in the crypto market. Currently, BTC's spot market value remains under pressure, after hitting resistance around $95,000. According to CoinMarketCap, the leading cryptocurrency has once again lost support below $90,000, recording a 2.23% drop over a 24-hour period.
Whales are preparing to protect Bitcoin's value
Historically, miners have not had sufficient strength to alter price cycles. Although these wallets influence the price during corrections or rallies, their sales rarely triggered definitive trend reversals. In other words, miners' transfers to Binance alone are not enough to trigger a freefall market (bear market).
CryptoQuant's analyses support this view, indicating that miners' role in previous cycles has been limited to delaying significant price movements, never reversing them entirely. In 2017 and 2021, it was observed that miners gradually sold while prices rose.
However, the current scenario is delicate. A prolonged downtrend could jeopardize miners' profit margins due to the decline in hashprice. Thus, even if whales manage to absorb immediate liquidity, the outflow of miners' coins to exchanges may remain high.
The miners' situation
Instability continues to shape investor sentiment. The drop below $90,000 this Thursday increases pressure on mining companies. The hashprice, which measures average profitability, has fallen to $38.9 per petahash (PH/s), after a brief spike. This revenue decline forces miners to liquidate their produced coins to meet operational obligations.