In the digital asset market, capital outflows have become increasingly noticeable in recent years, but recent data shows a completely different trend. Capital outflows hit a one-year low, and it is striking that miners are still hoarding Bitcoin on a large scale despite market volatility. What is the story behind this phenomenon? Let's explore it in depth.

The trend of capital outflows has always been one of the focuses of attention in the digital asset market. However, the latest data shows that capital outflows seem to have taken some turns. In the past year, capital outflows have decreased to a record low, which means that investors' confidence in the digital asset market is gradually recovering. The reasons behind this change are worth exploring in depth.

In the past year, the digital asset market has experienced many twists and turns, and investors were once worried about the market trend. However, despite the outside world's doubts about the uncertainty of the market, miners have shown strong confidence. Instead of selling Bitcoin, they chose to hoard this digital asset on a large scale. There may be a deeper logic behind this behavior, and it is necessary for us to conduct in-depth analysis on this.

The behavior of miners hoarding Bitcoin has attracted widespread attention in the market. Although the price of Bitcoin still fluctuates frequently, miners seem to be full of confidence in the future. They firmly believe that Bitcoin will usher in better development. This optimistic attitude is not only reflected in action, but also contains a deep understanding of the future potential of the digital asset market.

As the digital asset market continues to evolve, the mentality of investors is also undergoing subtle changes. Capital outflows hit a new low, and the hoarding behavior of miners has become a highlight of the market. Behind this phenomenon, there may be more information about the future trend of the digital asset market. We need to think deeply about this phenomenon.

In general, the development and changes in the digital asset market are affecting the mentality and behavior of investors all the time. Capital outflows hit a new low, and the hoarding behavior of miners has undoubtedly brought new thinking to the market. As the market continues to evolve, we also need to constantly adjust our investment strategies, grasp the pulse of the market, and realize wealth appreciation while not forgetting to maintain a keen insight into market development. May we overcome all obstacles on the journey of the digital asset market and finally reap fruitful results.

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On-chain data shows that Bitcoin miners are hoarding Bitcoin despite the 50% reduction in their revenue that began on May 11 with the third reward halving. The 7-day average outflow of Bitcoin miners and the inflow of mining funds to exchanges remain quite low.

About four weeks ago, on June 19, the total number of Bitcoins transferred from miner addresses reached a 10-year low. At that time, miners transferred 987 Bitcoins, but six days later on June 25, miners sent nearly 3,000 Bitcoins to exchanges on the same day (2,650 Bitcoins were sent to Bitfinex).

Despite the volatility on June 25, on-chain data shows that miners appear to have been hoarding Bitcoin since then.

(When the miner position indicator value is 0 or above 0, it indicates that most miners are selling BTC. So far, this value has been below 0 in the second quarter of 2020)

Despite the halving that cut miners' rewards in half, the number of miners selling coins remains at a historical low. Meanwhile, Bitcoin’s hashrate hit a new all-time high, remaining around 125 exahash per second (EH/s).

According to Glassnode, the seven-day average of Bitcoin transferred from mining activities on July 14 was about 1,240 Bitcoin. Miner funds flowing into exchanges were also low, with data showing that miners transferred less than 500 Bitcoin to exchanges on Tuesday.

(Seven-day average of Bitcoin transferred out of mining on July 14, 2020)

Speculators believe that miners choose to strategically hoard because they fully believe that Bitcoin prices will rise in the near future. However, a "black swan event" like the market sell-off on March 12 (Black Thursday) could cause more miner funds to flow out to exchanges.

The week after March 12 saw more Bitcoin sent to exchanges than in the entire month of February.

(Bitcoin sent to exchanges by mining pools on July 14, 2020. The last blue spike shown in the chart is the outflow of funds from miners to exchanges on June 25, 2020, when 2,650 Bitcoin flowed into Bitfinex)

On-chain data from Cryptoquant shows that the "Miner Position Index" rose in the week after "Black Thursday", and the same results were seen. When the miner position indicator value is zero or above, it means that most miners are selling BTC. Today's data from Cryptoquant's Miner Position Index and Glassnode's outflow chart show that Bitcoin miners do not sell all new coins after mining a block unless they have to sell under pressure.

In fact, Bitcoin transferred by miners to exchanges has fallen to a 12-month low this quarter. Statistics from Glassnode and Cryptoquant show that despite a rare outflow on June 25, single-day outflows have fallen rapidly.

In addition, data from bytetree.com also shows that miners tend to hoard Bitcoin rather than sell it immediately after mining it.

The cumulative rolling data from bytetree.com over the past week shows the difference in the time when miners mine new coins and spend them for the first time. Overall, despite the flow of miner funds to exchanges at the end of last month (June 25), miners are still strategically holding newly mined coins in the hope that prices will rise.