Mining operator sends over $1 billion worth of bitcoin to exchanges in two weeks | CoinDesk JAPAN | Coin Desk Japan

Bitcoin (BTC) miners have sent over $1 billion in cryptocurrencies to exchanges over the past two weeks, not necessarily to sell tokens.

Miners are entities that use their vast computing power to solve advanced cryptography and generate blocks on the Bitcoin blockchain. 6.25 BTC is rewarded for each block, which miners typically sell to raise funds or expand their business.

In a tweet on June 27, analytics firm CryptoQuant said that more than 33,860 BTC were sent to derivatives exchanges, but most of them were subsequently recovered into their own wallets.

Miners also reduced their reserve holdings by 8,000 BTC, but only a portion of that was sent to spot exchanges, the company added.

“This may suggest that miners are using freshly minted coins as collateral for their derivatives trading activities,” said a CryptoQuant analyst. “This type of trading is known as a hedge, betting in the opposite direction of the market consensus.”

Bitcoin has surged nearly 20% over the past two weeks amid positive news from traditional financial firms spot filings for bitcoin ETFs and rising trading interest.

On-chain indicators have previously suggested that Bitcoin may already be in the early stages of a bull market. That means Bitcoin-based companies like miners may already be taking steps to manage their reserves and holdings.

Meanwhile, according to on-chain analytics firm Glassnode, over the past few days, $128 million worth of bitcoin rewards have been sent to exchanges, equivalent to a day’s worth of mining. Estimated at 315% of revenue. This is the largest remittance ever recorded on this metric.

Previously, similar sums sent to exchanges have triggered a reversal of price appreciation when buyer demand cannot absorb sales.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: A typical mining facility (Sandali Handagama)
｜Original: Crypto Miners Sent Over $1B Bitcoin to Exchanges Over Two Weeks: CryptoQuant