Bitcoin Drops 7% Due to Miners’ Persistent Selling Pressure

Bitcoin has seen a plummet of almost 7% today as on-chain data shows the miners have continued to apply their selling pressure.

  1. Miner Reserve Decline: On-chain data reveals a 7% drop in Bitcoin prices, attributed to miners exerting selling pressure by reducing their Bitcoin reserves over the past 10 days.
  2. Miner Reserve Indicator: The “miner reserve” metric, tracking the amount of Bitcoin miners hold in their wallets, has steadily decreased, indicating ongoing selling moves by miners.
  3. Bearish Impact: Decline in the miner reserve suggests miners are withdrawing coins, potentially for selling, signaling a bearish impact on BTC prices.
  4. Trend Analysis: Chart analysis shows a consistent downtrend in the Bitcoin miner reserve over the past month, with miners initially selling during a market drop, accumulating during a rise, and selling again during a recent BTC rally.
  5. Selling Moves: Miners have reportedly sold BTC worth $176 million during this period, contributing to the recent market plunge to around $42,000.
  6. Timing and Profit-Taking: Miner selling moves coincided with BTC’s decline, possibly contributing to the market crash, although the impact is considered minor in the grand scheme of things.
  7. Alternative Explanation: CryptoQuant suggests a more significant source of selling pressure comes from large inflows into exchanges, resembling whale activity at a 45-month high, potentially explaining the price plunge.
  8. Current BTC Price: Bitcoin is currently trading at around $42,400, reflecting a 2% decrease over the past week, with the recent plunge attributed to both miner selling and increased whale activity.

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