On-chain data shows the Bitcoin miner exchange inflows have been dropping recently, a sign that may be bullish for the asset’s price.

Bitcoin Miner Exchange Inflow Has Been Declining Recently

As explained by CryptoQuant author Axel Adler Jr in a new post on X, miners have gradually been reducing their exchange inflows recently. “Exchange inflows” here naturally refer to transactions heading to wallets attached to centralized exchanges from self-custodial addresses.

In the context of the current topic, the exchange inflows made by miner-related wallets specifically are of interest. Generally, the main reason why miners transfer to these platforms is for selling, so large exchange inflows from them can be a sign that these chain validators are participating in a selloff.

Miners have constant running costs in the form of electricity bills, so selling from them is a regular occurrence, as without it, they can’t keep their operations going.

This regular selling is usually of a scale readily absorbed by the market, so there may be no visible negative effect on the asset’s price. Large and sustained exchange inflows, though, can be something to note, as they may imply unusual selling pressure from this group.

Here is the chart shared by the analyst that shows the trend in the 30-day moving average (MA) Bitcoin miner exchange inflows over the history of the cryptocurrency:

As the above graph shows, the 30-day MA of the Bitcoin miner exchange inflows had plunged to pretty low in the first few months of the year but then underwent a sharp reversal.

The reason for this increase could be that the fourth Halving occurred in April. Halvings are periodic events about every four years that permanently cut the BTC block subsidy in half.

In the chart, the analyst has also attached the data for the coin issuance on the network (colored in blue). From this metric, the effect of the Halving is apparent, as miners can suddenly only mint about half as many coins after each of these events as before them.

Miners make their income through two main sources, the transaction fees and the block subsidy, but most of the contribution generally comes from the latter. Thus, the miners depend on the block subsidy to make their income.

After the latest Halving, the miners naturally came under immense pressure because their revenue took a drastic hit. The exchange inflow trend would suggest that these chain validators had decided to sell off their reserves in response to this income squeeze.

The high inflows from the Bitcoin miners had continued for a while, but the 30-day MA of their exchange inflow has recently reversed, a potential sign that this cohort is finally pulling back on their selling. If this starts a sustained trend, then the cryptocurrency’s price might benefit from it.

BTC Price

Bitcoin has retraced much of its recent recovery during the last few days, as its price is now down to $60,300.

Ripple (XRP) is finally in line to receive mainstream global attention as the token has now joined the ETF queue. Bitwise, the financial giant, recently filed for XRP ETF, ushering in a wave of positive price momentum and influx. Here’s how the ETF may benefit XRP in the long haul.

Also Read: This One Marker Denotes Positive Bitcoin Movement Is Nigh: Here’s How

Bitwise Filing Signals Bullish Momentum for Ripple

Recently, technical data platform Santiment took to X to share how the Bitwise Filing has sparked a flurry of bullish activities in the ripple realm. For instance, the platform outlined how Bitwise’s filing has hyped up XRP, a center of positive whale activity.

Whale Activity and Social Hype Metrics

The platform stated that XRP has become a nucleus of surging on-chain activity after its ETF announcement went viral within the Web3 domain. Per Santiment, XRP’s whale activity and social hype metrics have topped the charts recently.

“Adding to the bullish signs, there were 145 whale transactions exceeding $1 million in value on October 1, a notable 6-month high. Whale activity often indicates that larger investors are either accumulating or positioning for a strategic move, suggesting that these players see value in XRP at its current price. Such whale transactions frequently precede market moves and can be a strong signal for smaller investors looking for cues on market direction.”

New Milestone In Transactions

The portal further shared how the token has also forged a new milestone by surpassing $2.30 billion in transactions, indicative of a possible bullish price momentum and rally on cards to spark very soon.

“Following Bitwise’s announcement, on-chain data has revealed a spike in XRP transaction volume, reaching an 8-month high of $2.39 billion shortly after the filings. This surge in volume indicates increased activity, likely tied to both traders’ reactions to the news and institutional accumulation. With such high volumes, the market sentiment can be volatile, and traders need to be cautious of potential short-term corrections.”

Also Read: US Lawmakers Push Bipartisan Support For Bitcoin Reserve Bill

The Token’s Price Forecast For October

According to CoinCodex, XRP may soon surge and spike 19% to hit the $0.65 price level by the end of October 2024.

“According to our current XRP price prediction, the price of XRP is predicted to rise by 19.28% and reach $0.625477 by November 3, 2024. Per our technical indicators, the current sentiment is bearish, while the Fear & Greed Index is showing 41 (fear). XRP recorded 15/30 (50%) green days with 5.15% price volatility over the last 30 days. Based on the XRP forecast, it’s now a bad time to buy XRP.”

Once the token breaches the $0.60 price mark, it can adopt a bullish streak, sparking noticeable price rallies in the near future.

Also Read: Cryptocurrency: AI Predicts 3 Breakout Coins Of 2024