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The CEO and creator of the on-chain analytics platform Cryptoquant, Ki Young Ju, unveiled shocking information pointing to a large-scale transfer of 700,000 Bitcoin (BTC), worth $35.9 billion. After the Exchange Traded Fund (ETF) was recently approved, these enormous sums of money were transferred to Over-The-Counter (OTC) desks used by miners over the course of the previous three weeks.
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Miners of Bitcoin as Market Enablers
The noted rise in Bitcoin block size during this spike in trading volume is an intriguing trend. A previous study stated that the current surge in Bitcoin prices has caused a significant 40–50% increase in block size on the network. This spike in activity is thought to be the cause of the block size rise.
Generally speaking, larger blocks result in greater transaction fees. The fact that there hasn't been a significant increase in fees despite the block size increase suggests that the enormous number of BTC bought and sold is mostly responsible for the increase.
The difficulty of mining bitcoin has increased to 81.73T, and in the past year, the network hashrate has almost doubled from 303 EH/s to an average of 577 EH/s. In order to pay for operating expenses and retain profitability, miners are under more pressure to sell their Bitcoin holdings as a result of the increase in difficulty, block size, and price.
On the other hand, the surge in institutional interest that has coincided with the establishment of spot Bitcoin ETFs offers a singular chance to leverage their strategic position in the ecosystem. Miners enable large-scale over-the-counter (OTC) trades by utilizing their huge Bitcoin holdings, thereby offering institutional investors access to liquidity and markets.
By doing this, they may be able to take advantage of advantageous pricing arrangements and large transaction fees. The high OTC Bitcoin volume shown in Young Ju's chart may be explained by this disposition.
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Prospects for Bitcoin and Current Market Conditions
Spot Bitcoin ETFs continue to see exceptional inflows, with the most recent net inflow of $631 million, despite worries about miner selling pressure and the possible impact on the price of BTC.
Experts predict that demand from traders of derivatives and Bitcoin ETFs will continue to drive the price surge of BTC. With a market capitalization of over $1 trillion, Bitcoin is trading at $51,360 at the time of writing, up 0.96% over the previous day.
Experts have predicted bullish price predictions for Bitcoin, with projections reaching $301,000 prior to the upcoming halving event, despite the selling by Bitcoin miners.