According to TechFlow, Bitcoin (BTC) has plunged 15% in the past month, which market observers attribute to miners selling, Mt. Gox refunds and the impact of the German state of Saxony. Greg Cipolaro, head of research at NYDIG, said the impact of these factors on the price drop has been exaggerated.
Cipolaro noted that while sentiment is dominant in the short term, analysis suggests the impact of a potential sell-off on prices is overstated, arguing that rational investors may see this as an opportunity created by irrational fear.
NYDIG data also showed that publicly traded mining companies increased their Bitcoin holdings in June, and reports of a massive sell-off by miners were inaccurate. Cipolaro advises against over-reliance on blockchain data to determine the nature of miners’ transactions.
