Markets
Here are who is selling BTC and started a correction
Since the price of Bitcoin rose above $71,000, followed by Ethereum spot ETF approval, market participants were confident of reaching a new ATH. Unfortunately, all expectations were changed within the rejection, while the recent pullback validated a strong downtrend. The huge bearish candles formed, which overcame the buying pressure, dragged the BTC Price outside the bullish range. Thus, it is now believed that highly speculated fund below US$60,000 can finally be achieved.
In times when institutions have seen record inflows in recent days, who is selling Bitcoin and creating selling pressure?
O Bitcoin Price it has been consolidating within the range for more than 100 days and this may have caused a strong capitulation phase by miners, which was rare. This was a result of the halving event, eliminating weak miners. Furthermore, the average cost for miners has risen to more than $75,000 per BTC, while the spot price has fallen to less than $67,000. Therefore, this could have forced them to reduce their balances, which were the lowest in the last 6 to 8 months.
According to Glassnode dataBitcoin miner balances have been steadily declining, reaching multi-year lows as sales increased following the recent Bitcoin halving in April 2024. According to data from Glassnode, balances fell from 1.84 million BTC in early 2023 to 1.8 million BTC in May 2024. This trend highlights the miner’s need to cover operational expenses following the reduction in block rewards.
Therefore, it can be said that Bitcoin miners played a significant role in the recent BTC price correction. They presumed to have sold more than 1,200 BTC – almost $80 million – which has prevented the rally from overcoming the crucial resistance at $71,800. Fortunately, this capitulation phase has come to an end, which could usher in a new bullish phase. Still, the question remains the same: whether Bitcoin (BTC) price managed to form a new ATH of $75,000 or not?
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