Historical data shows us that some miners started selling Bitcoin (BTC) in late July. This led to increased selling pressure in the cryptocurrency market.
Finally, The leading cryptocurrency has plummeted since mid-August, posting a 13% drop. Since then, BTC has struggled to get back to the $ 12,000 level.
Bitcoin sales by miners from 2017 to 2020. Source: CryptoQuant
According to Ki Young Ju, CEO of CryptoQuant, the miners’ continued sale may not be enough to prevent a bull run. Company for the analysis of chain data They closely watch the movements of miners and whales because they move significant amounts of BTC.
Willy Woo, a chain analyst, stated that miners are one of two external sources of selling pressure for bitcoin. Before said::
“There are only two unmatched sales pressures on the market. (1) Miners who dilute supply and sell it in the market is the hidden tax of money inflation. And (2) exchanges that tax traders and sell in the market. “
When miners start selling their Bitcoin holdings, usually to cover costs, could trigger a correction in the cryptocurrency market.
For example, the price of Bitcoin fell from $ 12,486 to $ 9,813 from August 17 to September 5. During this time, several whales were selling Bitcoin for $ 12,000, and the same behavior was seen among miners.
The pressure to sell from miners and whales is particularly due to the recent crash in the cryptocurrency market. but in the long run Ki explained that this was not enough to stop a prolonged bull run.
If miners abruptly sell a significant amount of BTC, it could lead to a major correction. because a small price movement could trigger liquidations by highly leveraged traders. So, Even a relatively small sell-off by miners could theoretically lead to large price fluctuations.
Ki says the miners sell-off intensity wasn’t strong enough to stop future bull runs. said::
“Miners Update: Some miners started selling in late July, but I think in the long run miners haven’t sold enough BTC to stop the next bull run.”
Bitcoin miners’ net inventory has decreased by 125 BTC per week in the past 12 weeks, according to ByteTree. This data indicates that Miners were selling around $ 1,362 million worth of BTC weekly over the BTC they mined.
Amount of BTC that has been mined and sold in the past 12 weeks. Source: ByteTree
As Ki pointed out, the data shows that the miners sold significant amounts of BTC, but not in amounts that were incompatible with normal behavior.
A bull cycle after the halving is still possible
Bitcoin continues to hover above the critical support level of $ 10,000 despite repeated attempts by the bears to bring the price below this key level.
Bitcoin’s resistance in the face of increased selling pressure indicates a cautious long-term uptrend.
Net Unrealized Gain / Loss (NUPL) from short-term holders of BTC. Source: Glass knot
Various chain metrics indicate this as well We are now in a healthy accumulation phase for Bitcoin. Rafael Schultze-Kraft, CTO of Glassnode, said::
“Short term unrealized net profit / loss (STH-NUPL) with a bullish signal here in my opinion. This rebound from the 0-line was significant, very characteristic of previous bull markets and historically a good buying opportunity.”