Ethereum’s transition to consensus proof-of-stake governance should take place in less than a few hours at the time of this writing.
With this, spot exchanges have seen massive inflows of BTC, which is usually a precursor to increased volatility.
- Data from popular cryptocurrency analysis resource CryptoQuant reveals that BTC entering exchanges has increased significantly over the past few hours.
- A CryptoQuant analyst commented on the matter, who said:
The current value of miner transfers to spot exchanges (hourly) is 10.4537 as of September 14, 2022, higher than recent peaks in miner transfer activity. Stable values above 10 were last recorded in July-August before the local fall in BTC. Generally, massive transfers of miners to spot exchanges are usually associated with subsequent pressure, i.e. miners selling off and the price of BTC falling.
- When miners transfer their BTC to spot exchanges, it usually suggests that they are more willing to sell it, so the event is a precursor to higher volatility, most often propelling a downward move.
- It’s also worth noting that inflows spiked a few hours before the next merge event, when Ethereum transitions to a proof-of-stake governance mechanism.
- It remains entirely possible that BTC miners are bracing for the market turmoil that many analysts are predicting.
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