Bitcoin Miners Linked to $35.9B OTC Trade Post ETF Approval

Ki Younger Ju, the founder and CEO of the on-chain analytical platform Cryptoquant, revealed startling information indicating a large switch of 700,000 Bitcoin (BTC), valued at $35.9 billion. These huge funds have been moved to Over-The-Counter (OTC) desks utilized by miners over the previous three weeks following the current approval of the Trade Traded Fund (ETF).

Bitcoin Miners as Market Facilitators

An attention-grabbing growth amidst this surge in buying and selling exercise is the noticed improve in Bitcoin block dimension. In line with an earlier report, the Bitcoin community has skilled a notable 40-50% increase in block size, attributed to heightened community exercise pushed by Bitcoin’s current rally.

Ordinarily, a rise in block dimension typically results in greater transaction charges. Nonetheless, regardless of the rise in block dimension, there was no main improve in charges, indicating that the rise is generally pushed by the massive quantity of BTC buying and promoting.

700K $BTC has moved to OTC desks utilized by miners over the previous three weeks following spot #Bitcoin ETF approval.https://t.co/beKpUVllNj pic.twitter.com/3F20yAxuX5

— Ki Younger Ju (@ki_young_ju) February 22, 2024

Bitcoin mining problem has soared to 81.73T, with the community hashrate practically doubling within the final 12 months from 303 EH/s to a median of 577 EH/s. This surge in problem, coupled with the rise in block dimension and BTC worth, provides strain on miners to promote their BTC holdings to cowl operational prices and preserve profitability.

Nonetheless, the inflow of institutional curiosity following the approval of spot Bitcoin ETFs presents a singular alternative to capitalize on their strategic place inside the ecosystem. By leveraging their substantial holdings of Bitcoin, miners can facilitate large-scale OTC trades, offering liquidity and market entry to institutional buyers.

In doing so, they stand to learn from profitable transaction charges and probably favorable pricing preparations. This disposition may account for the massive OTC Bitcoin quantity as identified within the chart shared by Younger Ju.

Bitcoin Outlook and Market Traits

Regardless of issues surrounding miner promoting strain and the potential impression on BTC price, spot Bitcoin ETFs proceed to witness excellent inflows, with the newest net inflow totaling $631 million.

Consultants consider that the BTC worth rally will persist, fueled by demand from Bitcoin ETFs and derivatives merchants. As of the time of writing, Bitcoin is buying and selling at $51,360, reflecting a 0.96% improve prior to now 24 hours, with a market capitalization exceeding $1 trillion.

Regardless of the Bitcoin miner promoting, specialists have projected bullish worth targets for BTC worth with forecasts as high as $301,000 earlier than the approaching halving occasion.