Is the decline of Bitcoin caused by miners selling coins?
The cumulative Bitcoin held by BTC miners has fallen to the lowest level in 14 years.
From the news of mining machines in the past few days, we can know why they sell BTC to recover their investment as soon as the price of Bitcoin falls. This is because some old machines have no choice but to lose money when they are turned on!
$66,000 is the hosting shutdown price of the median mining machine (S19XP) in the United States, the world's largest BTC mining market, which can be regarded as the beginning of the global miners' clearing.
If Bitcoin falls to $63,700, miners will sell more Bitcoin to stop losses, thereby triggering more selling, and a short-term downward adjustment may occur.
Three major groups sell Bitcoin, and hedge fund arbitrage opportunities may have disappeared
Although the current market structure is not completely bullish, we speculated three weeks ago that Bitcoin will try to break through when it approaches $70,000 based on the view that "parabolic rises are usually achieved after reaching historical highs"; and when the breakthrough fails, risk management becomes critical. At that time, we estimated that lower inflation data would be a catalyst for Bitcoin's price increase, and it did, but Bitcoin was sold off heavily.
First, contrary to the active buying of Bitcoin ETFs brought about by previous inflation changes, Bitcoin ETFs sold $1 billion of assets in the past eight trading days.
Second, Bitcoin miners' over-the-counter sales increased to the largest single-day volume since March, with sales exceeding 3,200 Bitcoins in one day. Listed mining companies account for 3% of the market share, but sold a net 8,000 Bitcoins in May (June data has not yet been released, but miners' sales have increased significantly). Miners' Bitcoin reserves have fallen from $129 billion on June 5 to $118 billion now.
Finally, another group of sellers are early Bitcoin holders, who sold $1.2 billion.
The market has sold Bitcoin one after another, triggering panic among retail investors, and the future trend of Bitcoin is still bearish!
If this article is helpful to you, you may want to follow Laolang. If you have any questions or want to learn together, please read the introduction of Zhuye and learn for free!
