Bitcoin Miners Selling Pressure
Bitcoin has experienced a 7% drop as on-chain data reveals that miners continue to sell their holdings. Analyst Ali has highlighted the significant selling moves made by BTC miners over the past 10 days. The key metric of interest is the “miner reserve,” which tracks the total amount of Bitcoin held by miners in their wallets.
When this metric decreases, it indicates that miners are transferring their coins out of their addresses. Typically, miners withdraw their Bitcoin for selling purposes, which can have a bearish impact on BTC. Conversely, an increase in the value of the indicator suggests that miners are accumulating, potentially leading to bullish implications for the price in the long term.
Trend in Miner Reserve
A chart depicting the trend in Bitcoin miner reserve over the past month reveals an overall downtrend during the last 10 days. This decline in the metric suggests that miners have been exerting selling pressure on the market.
Initially, miners sold their holdings as BTC dropped from above $43,000 to its recent lows. However, when BTC reached these lows, some miners took advantage of the opportunity to accumulate, causing a slight rise in the reserve. After Bitcoin’s rally towards $45,000, miners resumed selling, resulting in a further decrease in the indicator. In total, miners sold approximately $176 million worth of BTC during this period.
Possible Factors Contributing to Price Plunge
The timing of these profit-taking moves from miners coincided with Bitcoin’s crash today. While it’s possible that these moves played a role in the plunge, their contribution would be minimal compared to other factors. CryptoQuant, an on-chain analytics firm, suggests that the significant selling pressure behind the crash may be attributed to large inflows of Bitcoin into exchanges. This influx, which is at a 45-month high, indicates whale activity and could explain the price drop.
Bitcoin Price
As of now, Bitcoin is trading around $42,400, experiencing a 2% decline in the past week.
Hot Take: Selling Pressure from Miners and Whales Impact Bitcoin’s Price
The selling pressure exerted by both miners and whales has influenced the recent price movements of Bitcoin. While miners have been selling their holdings, indicating a bearish trend, the impact of their sales on the overall market has been limited. On the other hand, large inflows of Bitcoin into exchanges suggest significant whale activity and provide a more plausible explanation for the recent price plunge. With Bitcoin currently trading around $42,400, it remains to be seen how these factors will continue to affect its price in the future.
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