Bitcoin miners have transferred more than 90,000 BTC to Binance since the start of February, marking the highest level of miner exchange inflows seen since 2024, according to on-chain data from Arab Chain. The spike comes amid heightened market volatility and investor uncertainty, creating short-term selling pressure even as large holders moved in the opposite direction.
Rising Miner Activity Signals Potential Sell Pressure
Arab Chain’s data shows that miner deposits accelerated immediately after February began, with a single day recording over 24,000 BTC sent to Binance. Such activity typically reflects miners selling part of their holdings to cover operating costs or secure profits during volatile periods, making these inflows a key indicator of near-term supply.
The timing coincided with Bitcoin’s sharp correction last week, which briefly pushed prices below $60,000 for the first time since October 2024, extending the drawdown to more than 50% from its last all-time high. During this period, nearly 241,000 BTC were moved to exchanges, with Binance seeing particularly heavy inflows from short-term holders. Analyst Darkfost described this activity as consistent with capitulation, especially among investors reacting to rapid losses.
Retail investors also changed behavior during the sell-off. Holders with less than one Bitcoin, often called “shrimps,” increased their daily transfers to Binance, reaching more than 1,000 BTC on February 5, well above their monthly average of approximately 365 BTC. This spike in activity eased once prices recovered above $70,000, suggesting retail selling pressure diminished as the market stabilized.
Whales Accumulate During Price Recovery
While miners and smaller holders moved coins to exchanges, large holders took the opposite approach. Analyst CW8900 reported on February 8 that whales added nearly 67,000 BTC to long-term accumulation addresses in a single day, the largest inflow of this cycle.
Since then, Bitcoin has traded just above $70,000 according to CoinGecko, rising roughly 1% on the day but still down nearly 8% over the past week and more than 22% in the last 30 days. The recent rebound follows a steep decline from the mid-$80,000 range, which erased post-election gains and pushed major altcoins lower by double digits.
Market sentiment remains fragile. The Bitcoin Fear and Greed Index fell to its lowest reading since 2019, even after prices bounced from recent lows. Elevated miner inflows suggest continued selling pressure, while whale accumulation and reduced retail activity indicate that supply and demand are becoming more balanced, with Bitcoin currently attempting to hold above $70,000.
