Will Bitcoin miners continue to decline further after selling over 20000 BTC in a week?From a historical perspective, as the market finds a balance between buyers and sellers, miners typically sell Bitcoin before a bull market.The leading cryptocurrency, Bitcoin (BTC), has gone through a challenging week, with prices plummeting by over 2
Will Bitcoin miners continue to decline further after selling over 20000 BTC in a week?
From a historical perspective, as the market finds a balance between buyers and sellers, miners typically sell Bitcoin before a bull market.
The leading cryptocurrency, Bitcoin (BTC), has gone through a challenging week, with prices plummeting by over 2.30% in the past 24 hours to $27354 as of the time of publication. Although the ongoing war between Israel and Palestine and various macroeconomic factors have led to fluctuations in Bitcoin, the recent large-scale sell-off by Bitcoin miners has raised concerns about its future trajectory.
Bitcoin mining machine sell-off triggers an alarm
Today, cryptocurrency analysis company 'IntotheBlock' clarified this issue through a tweet, statingBitcoin miners sold over $20000 in BTC this week, the largest quantity since April
The company further pointed out that there are several important reasons for the significant increase in Bitcoin sales by miners, and stated: "This indicates that miners are using higher Bitcoin prices to offset their operating costs. Although it is not uncommon, it may bring significant selling pressure to the market
It is worth noting that although this is a common practice among miners as they often need to sell some of their extracted Bitcoin to fund their operations, such as electricity costs and maintenance of mining equipment, the scale of this selling has attracted attention.
Over 20000 BTCs were sold within a week, marking the largest such event since April. The number of Bitcoins entering the market may lead to increased selling pressure, which may lower prices.
September's profits hit a historic high
That is to say, after the record profits of Bitcoin miners in September, the activity of miners surged. Several famous Bitcoin mining companies recently released impressive results from last month. CleanSpark extracted 643BTC, RiotBlockchain extracted 362BTC, and MarathonDigitalHoldings extracted an astonishing 1242BTC last month.
While celebrating their achievements, these mining companies have also formulated future plans. For example, the marathon expressed concern for growth and announced plans for international expansion using low-cost renewable energy. However, these successes were not smooth sailing, as the marathon experienced challenges such as mining invalid blocks due to trading arrangements errors.
Nevertheless, although mining activity is certain to affect short-term price trends, people are optimistic that selling pressure will be largely exhausted after halving, which may pave the way for a recovery of bullish sentiment.
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