Bitcoin
Crypto Market in Turmoil – Bitcoin Miners Heavy-Handed?
4:00 pm ▪ 3 min reading ▪ by Mikaia A.
The cryptocurrency market is currently going through a delicate period, marked by intense selling pressure. This situation is causing traders to break out in a cold sweat as they helplessly watch major altcoins fall below critical support levels. Although accumulation in Spot Bitcoin ETFs is increasing, the trend of massive sales is worrying investors.
The shocking impact of miners on the price of Bitcoin
Bitcoin, often referred to as the king of cryptocurrencies, recently surpassed the Mark of US$71,000, reinforcing the optimism of market players. With the SEC giving its green light for Ethereum Spot ETFeuphoria was at its peak, with expectations of imminent historic records.
However, this euphoria was short-lived. A sudden drop in the price of bitcoin dashed hopes of quick gains, leaving investors perplexed.
Marked bearish candles quickly took control buying pressures, knocking bitcoin off its upward trajectory. The hypothesis of a fund below US$60,000 is no longer ruled out, fueling speculation.
Experts point to the capitulation of miners as the main cause of this selling pressure, observed CoinTurk. With an average production cost higher than the selling price, miners are forced to liquidate their assets, thus reducing their balances to historically low levels.
Since the beginning of the year, miners’ reserves fell from 1.84 million to 1.8 million BTC, a sign of massive sales to cover operational costs following the reduction in block rewards.
Crypto Market Turbulence and Massive BTC Sales
Bitcoin miners recently sold more than 1,200 BTC, or about $80 million, contributing significantly to the recent price correction.
This selling movement prevented Bitcoin from breaking crucial resistance at $71,800, putting the long-awaited rally on hold. Data from Glassnode indicates that this phase of miner capitulation, although painful, may be coming to an end.
Once this phase is over, a new upward impulse may emerge, rekindling investors’ hopes.
The leading cryptocurrency has yet to prove its resilience in the face of these turbulences. The next few days will be crucial to assess whether the market can overcome this selling phase and move towards new heights.
Investor reactions and price developments will be fundamental in charting the path forward. One thing is for sure, bitcoin miners, through Your actions, continue to play a central role in the dynamics of the cryptocurrency market.
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Mikaia A.
The blockchain and cryptography revolution is underway! And on the day that the impacts were strongly felt in the economy, the most vulnerable in this world, although with all hope, I said that you are the one who chose
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.