CryptoQuant User Guide
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  • 🔍What is CryptoQuant
    • Introduction
      • How We Process Data
      • Why Trust CryptoQuant Metrics?
      • Why Market Driven?
    • Background Knowledge
      • What is On-Chain Data?
      • What are Entities?
      • What is a UTxO?
    • Our Product
  • 🎯QuickStart
    • 5 Minute Data Guide
      • 3 Key On-Chain Metrics
      • 3 Key Market Metrics
      • 3 Key Indicators
      • Deriving Insights
    • 5 Minute Feature Guide
      • 1. Charting Overview
      • 2. Set Alerts
      • 3. Dashboards
      • 4. Quicktake
      • 5. Top 15 Pro Charts
        • Miner Selling
        • Whale Accumulation
        • Large OTC deals
        • Buying/Selling Pressure
        • Market Trend
        • Market Sentiment
        • Whale Dumping
  • 📊CryptoQuant Metrics
    • Exchange Flows/Indicators
      • Exchange In/Outflow and Netflow
      • Exchange Reserve
      • Exchange to Exchange
      • Exchange Addresses Count
      • Exchange Transactions Count
      • Fund Flow Ratio
      • Exchange Supply Ratio
      • Exchange Inflow CDD
      • Exchange Inflow - Spent Output Age Bands
      • Exchange Inflow - Spent Output Value Bands
    • Miner Flows/Indicators
      • Miner Outflow
      • Miner to Exchange
      • Miners' Position Index (MPI)
      • Miner Supply Ratio
    • UTxO Data/Indicators
      • Profit and Loss (UTxO)
      • Profit and Loss (Supply)
      • Coin Days Destroyed (CDD)
      • Binary CDD
      • Mean Coin Age (MCA)
      • Sum Coin Age (SCA)
      • Sum Coin Age Distribution (SCA Distribution)
      • Spent Output Profit Ratio (SOPR)
        • aSOPR (Adjusted SOPR)
        • STH-SOPR
        • LTH-SOPR
        • SOPR Ratio (LTH-SOPR/STH-SOPR)
      • Net Unrealized Profit/Loss (NUPL)
      • UTXO Bands (Age)
        • UTXO Age Bands
        • Realized Cap - UTXO Age Bands
        • Realized Price - UTXO Age Bands
        • UTXO Count - Age Bands
        • Spent Output Age Bands
      • UTXO Bands (Value)
        • UTXO Value Bands
        • Realized Cap - UTXO Value Bands USD
        • UTXO Count - Value Bands
        • Spent Output Value Bands
    • Market Data/Indicators
      • Open Interest
      • Funding Rates
      • Estimated Leverage Ratio
      • Taker Buy Sell Volume/Ratio
      • Capitalization models
      • Realized Price
      • Exchange Whale Ratio
      • MVRV (Market Value to Realized Value) Ratio
    • Network Indicators
      • NVT Ratio
      • NVT Golden Cross
      • Puell Multiple
      • Stock to Flow Ratio
      • Stock to Flow Reversion
      • NVM Ratio
    • Stablecoin Exchange Flows/Indicators
      • Stablecoin Network Data
      • Stablecoin Exchange In/Outflow & Netflow
      • Stablecoin Exchange Reserve
      • Stablecoin Exchange Addresses Count
      • Stablecoin Exchange Transactions Count
      • Stablecoins Ratio
      • Stablecoin Supply Ratio (SSR)
    • Fund Data & Premium
      • Grayscale Bitcoin Trust (GBTC)
        • GBTC Digital Asset Holdings
        • GBTC Premium or Discount
      • Grayscale Ethereum Trust (ETHE)
        • ETHE Digital Asset Holdings
        • ETHE Premium or Discount
      • Coinbase Premium
      • Korea Premium Index
      • Bank Supply Ratio
  • 🛠️Web3 Analytics Tool
    • Overview
    • Cohort Data Navigation
    • Query Data Navigation
    • How to Use(Query Tool)
      • 1. DateTime Aggregation
      • 2. Query Block - Metric
      • 3. Query Block - Where
      • 4. Query Block - Group by
      • 5. Query Block - Join
      • 6. Query Block - Order by
      • 7. Save and Run
      • 8. Editing the Result
      • 9. Visualization
        • Table
        • Pie
        • Serial
        • Number
        • Pivot Table
  • 📌Reference
    • FAQ
    • Community Guidelines
    • Community Links
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On this page
  • Reason to look for Miner flows/indicator
  • Looking into Miner's cost-benefit model with BTC price
  • How to look at indicators
  • 1) How many coins came out from miners
  • 2) How many coins are withdrawn from miners to the exchange
  • 3) To look out if most of the miners are selling BTC
  • Points to be aware

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  1. CryptoQuant Metrics

Miner Flows/Indicators

Entry into Miner flow/indicator

Data/Indicator
Definition
Interpretation

Miner

-A miner controls supply on the blockchain by mining blocks.

If mining pools shut down their mining activities for some reason, the network cannot be maintained.

-The place where additional newly coined amount is generated

The outflow of BTC from mining pool wallets

  • High

    A lot of miners' coins are exposed to selling -Bearish

  • Low

    Only a few of miners' coins are exposed to selling- Bullish

  • Increasing Miners' selling power is increasing- Bearish

  • Decreasing Miners' selling power is decreasing - Bullish

The total amount of coins transferred from mining pool to exchange wallets

  • High

    A lot of miners' coins are exposed to selling -Bearish

  • Low

    Only a few of miners' coins are exposed to selling- Bullish

  • Increasing Miners' selling power is increasing- Bearish

  • Decreasing Miners' selling power is decreasing - Bullish

Defined as the ratio of the number of all miners' outflows in USD divided by 365 days moving average of it.

  • High

    Miners are sending their coins more than usual - Bearish

  • Low

    Miners are sending their coins less than usual - Bullish

  • Increasing : Miners are being more involved in selling and increasing their sell - Bearish

  • Decreasing : Miners are being less involved in selling and decreasing their sell - Bullish

Reason to look for Miner flows/indicator

Looking into Miner's cost-benefit model with BTC price

The time point for their selling or even buying provides valuable insights generated from miner's perspective.

Miners spend their money in mining that comes with electricity or maintenance cost which makes them the only entity that follows a typical business model. They are forcibly required to sell some of their mined BTC to cover the costs. This business structure naturally exposes some of reasons behind miner's behavior. For example,

1) If they sold their BTC regularly with unusually big amount, it could indicate that Miners are selling at over-valued BTC price.

2) If they start to buy BTC instead of collecting fiats to pay for their costs, it could indicate that BTC is under-valued leading the miners to postpone their selling and trying to benefit from the under-valued BTC price.

Thus, looking at the behavior pattern of miners could provide investors with market insight that took cost-benefit model of miners into account

How to look at indicators

This section identifies the look out point for individual indicators. These indicators could be divided by their identity and the usefulness in trading. Each data tracks each feature of miners and put together, they cover multiple aspects and capture movements in miners relatively precisely.

If you want to make use of exchange data by figuring out

1) How many coins came out from miners

Checking the outflow from miners

2) How many coins are withdrawn from miners to the exchange

Checking the flow into the exchange is a great way to keep track of coins that could be sold from miners

3) To look out if most of the miners are selling BTC

Due to covering their cost, it is normal for miners to sell their BTC but if most of miners are selling, it could indicate a future price drop or provide top signal

It is wise to take a look at each indicator according to the number stated above.

Points to be aware

Just like any flow data, all the outflow from miners doesn't indicate immediate selling

Firm belief in correlation to outflow from miner with price drop will not always be correct because there are several reasons miner send their BTC to other address.

1) Just an internal wallet transfer

2) Sending their BTC to sell in the future

3) Possibility of re-sending BTC to their own wallet from exchange

There is also a possibility where miners predicted or wrongfully valued BTC.

Even though miners know the cost to generating BTC, their prediction of future BTC price could be wrong and inferring their movement with future BTC price might be misleading. For example, miner's selling does not necessarily mean a price top and their buys doesn't correlate to bottom price with BTC all the time.

In addition, there are other factors to consider such as the market competitor relation with new-old miners affecting their unexpected cost and recovering cost time preference might differ from halving to halving or by different with miner pools.

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Last updated 1 year ago

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Miner Outflow
Miner to Exchange
Miners' Position Index (MPI)
What are Entities?
Miner Outflow
Miner to Exchange
Miners' Position Index (MPI)