© Reuters.
NEW YORK – Miners are transferring substantial amounts of the cryptocurrency to exchanges, with outflows reaching a level not seen in several months, indicating a possible increase in selling pressure. This uptick in mining activity comes amid a notable development in the investment landscape: the approval of several Bitcoin ETFs by the US Securities and Exchange Commission (SEC).
The SEC's green light for Bitcoin ETFs is seen as a positive step for the cryptocurrency market as it may attract more investors to the digital asset class. These exchange-traded funds provide a regulated and potentially less risky avenue for investing in Bitcoin, which could offset any negative sentiment arising from increased miner outflows.
Additionally, the Bitcoin network hashrate, a measure of the computing power dedicated to mining and transaction processing, has reached new all-time highs. This increase in hash rate reflects increased mining activity and competition, which often translates into higher operating costs for miners. As a result, miners may be incentivized to sell Bitcoin to cover these expenses, contributing to the observed outflows.
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