Bitcoin miners have transferred over 90,000 BTC to Binance since early February, marking the highest miner inflows since 2024, as reported by Arab Chain. This influx of deposits occurs amidst significant market volatility and influences short-term selling pressure even as larger investors are accumulating.

Miner Selling Increases Amid Market Turbulence

On-chain data from Arab Chain reflects a boost in miner activity, particularly notable at the beginning of February, when a singular day saw deposits exceeding 24,000 BTC to Binance. Such movements typically indicate miners liquidating parts of their holdings to manage operational costs or secure profits amidst turbulent price swings. These inflows may signal increased sell pressure.

• “Miners converting their holdings can add to market supply, impacting price stability during volatility.” - This is a common observation during significant price fluctuations.

Recently, Bitcoin experienced a sharp decline, briefly dropping below $60,000—a price that had not been seen since October 2024—contributing to a more than 50% drop from its last all-time high.

During the same period, the entire market saw nearly 241,000 BTC pouring into exchanges, indicating high activity from short-term holders, with heavy movements suggesting capitulation among those reacting to rapid losses.

When examining retail behavior, the data notes that holders with less than 1 BTC, referred to as “shrimps,” significantly ramped up their transfers to Binance post-sell-off, peaking over 1,000 BTC daily on February 5, far surpassing the typical monthly average.

Whales Accumulate as Prices Reach $70,000

Contrasting the activity of miners and smaller holders, larger investors—commonly known as whales—are pursuing the opposite strategy. An analyst under the pseudonym CW8900 noted that whales amassed nearly 67,000 BTC into long-term holdings in one single day, marking the largest inflow seen in this cycle.

As of now, Bitcoin trades just above $70,000, reflecting a 1% increase on the day, despite a 22% dip over the last month. This rebound follows losses from the mid-$80,000 range, part of a larger downturn that wiped out gains after the U.S. elections.

Current market sentiment remains fragile, marked by the Bitcoin Fear and Greed Index, which has dipped to its lowest level since 2019, underlining the importance of understanding these dynamics as they play out.

Exchange flows indicate ongoing market pressures, while the simultaneous accumulation by whales suggests a delicate balance, as Bitcoin attempts to stabilize above the $70,000 threshold.