As miner outflows surge to multi-year highs, over $1 billion worth of bitcoin (BTC) has been transferred to exchanges, with a significant portion originating from mining giant F2Pool, as indicated by CryptoQuant data. Bradley Park, an analyst at F2Pool, explained that the heightened outflow is a response to escalating operational costs faced by miners.
As Bitcoin Miner Outflows Soar to Six-Year Highs Prior to Halving
In a Telegram message to CoinDesk, Park attributed F2Pool‘s increased expenses to its relocation to Kazakhstan and the necessity to upgrade miners to Bitmain’s latest Antminer T21 ahead of the halving. This upgrade reduces mining rewards, consequently lowering the per-machine yield. F2Pool’s hashrate has already begun to climb, signaling the initiation of its capacity enhancement. Hashrate measures the computational power within a blockchain network.
Six-Year Highs in Bitcoin Miner Outflows Precede Halving, Generating Mixed Signals
Miners, utilizing substantial computing resources, validate transactions and secure proof-of-work networks like bitcoin. Their revenue predominantly comes from automatic token rewards granted by the networks they mine. Historically, increased miner outflows to exchanges have sometimes been considered a bearish signal for bitcoin’s price, often anticipating downward price movements. However, the correlation is not absolute, and there have been instances, such as in August 2019, when bitcoin’s price continued to rise despite heightened outflows.
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