Onchain Analysis

Are the miners selling ?

Do miners effectively sent more than 5k bitcoin to exchange today?

Few hours ago, at 16:09 UTC+1 we notified in our telegram channel BtcInOutAlert an inflow of 6355 Bitcoins to a Binance address. 5380 of those bitcoins are coming from an address of “Poolin” pool.

Based on few tweets, this potentially could indicate that 1 or more miners sent bitcoin to exchanges (potentially to sell them). Is that really the case? This is the pool address history. There are currently over 12,500 Bitcoin present.

Whoever mined in his/her life at least once, will tell you that those tweets are not stating the truth. Let us explain why.

Just few miners around the globe can effectively mine “solo”; for all the other miners (basically the majority), it is nearly mandatory to be part of a pool, in order to be profitable and, at the same time, obviously share the block’s reward.

Owning 1 asic and participating to mining (with pool) will imply to have an account to get the reward credited. For each block mined, the owner of the asic will receive a reward. Every pool has its own rules in order to succesfully run the service (fees, minimum withdrawal).

It is pivotal to understand that every Satoshi mined will be kept in the pool (therefore not 100% owned by the miners) for as long as it will not be sent from a single miner to his/her personal address.

Why are we explaining all that? Because that is the base logic. Based on that, it does not seem reasonable that a single miner with a net worth of 100mio$ in bitcoins will let them “abandoned” in the pool wallet, rather than sending them to his/her own address.

Are you willing to take that risk, if that was your own money? The answer is obviously NO !!

Could that amount be an aggregation of more than one miner, grouping btc and sending them together? That could be absolutely possible, but it would require an outstanding coordination and a difficult cash out once such a quantity enters the market.

So, which are the best scenarios behind that 5k inflow? Below few likely options: – Poolin’s gain, originated from fees, were moved to exchanges – a large OTC transaction, in which the exchange become a mediator between the Pool selling and someone buying – Coinjoin

This is a short answer to a very complex and difficult question to explain in a few words, but the answer is certain. Do miners effectively sent more than 5k bitcoins to exchanges today? The answer is obviously NO !!