Bitcoin BTC/USD saw its miners flee from the network in the wake of the fall of major crypto exchange FTX.
What Happened: The seven-day average of Bitcoin’s miner outflow volume just reached a three-month high of $1,734,353 earlier today, according to data provided by on-chain analytics platform Glassnode. What this means is that miners — known for often accumulating large amounts of Bitcoin — are selling more BTC than they have over the last three months, with the previous high being observed on Sept. 2, 2022.
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Why It Matters: This is a rather bearish metric considering that miners, in a way, control Bitcoin’s actual inflation where the theoretical is enforced by software. Real inflation is established by the number of blocks mined and reward per block, but is this inflation effective if this new Bitcoin is stuck in the wallets of the miners and does not actually enter circulation?
Earlier today, Glassnode data showed Bitcoin’s seven-day average of the percentage of miner revenue from fees reached a three-month high of 2.268% — presumably in reaction to the recent violent price swings — by prioritizing fast transaction speeds over low transaction costs. Glassnode also indicated that the seven-day moving average of the mean transaction volume on the network also reached a one-month high of 12.715 BTC, a staggering average of over $219,000 per transaction.
Still, not every data point is grim. Long-term accumulation — and arguably lost coins — according to a Glassnode chart, continued to grow as the percent of Bitcoin’s supply last active five or more years ago reached an all-time high of 25.752%.
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Read More: Bitcoin Miners Flee, Selling Their Balances In The Wake Of FTX’s Fall – Bitcoin (BTC/USD)