Markets
The crypto market in turmoil – Bitcoin miners wielding a heavy hand?
4:00 p.m. ▪ 3 min reading ▪ by Mikaia A.
The cryptocurrency market is currently going through a delicate period, marked by intense selling pressure. This situation is sending traders into a cold sweat as they helplessly watch major altcoins fall below critical support levels. Although Spot Bitcoin ETF accumulation is increasing, the sell-off trend has investors worried.
The shocking impact of miners on the price of Bitcoin
Bitcoin, often considered the queen of cryptocurrencies, recently surpassed the The $71,000 mark reinforces the optimism of market participants. With the SEC giving its green light for Ethereum Spot ETFeuphoria was at its height, with the expectation of imminent historic records.
But this euphoria was short-lived. A sharp fall in the price of bitcoin dashed hopes of quick gains, plunging investors into confusion.
Marked bearish candles quickly took over buying pressures, knocking Bitcoin off its upward trajectory. The hypothesis of a floor below $60,000 can no longer be ruled out, fueling speculation.
Experts emphasize the capitulation of miners as the main cause of this selling pressure, note CoinTurk. With an average production cost higher than the sale price, miners are forced to liquidate their assets, thereby reducing their balances to historically low levels.
Since the beginning of the year, miners’ reserves increased from 1.84 million to 1.8 million BTC, a sign of a massive sell-off to cover operating costs after reducing block rewards.
Crypto market turmoil and BTC sell-off
Bitcoin miners recently sold over 1,200 BTC, or around $80 million, significantly contributing to the recent price correction.
This selling movement prevented Bitcoin from break crucial resistance at $71,800, suspending the long-awaited rally. Glassnode data indicates that this phase of miner capitulation, while painful, may be coming to an end.
Once this phase is completed, a new bullish momentum could emerge, revive the hopes of investors.
The flagship crypto has yet to prove its resilience in the face of this turbulence. The next few days will be crucial to assess whether the market can overcome this selling phase and advance to new heights.
Investor reactions and price action will be key in charting the path forward. One thing is certain, Bitcoin miners, thanks to their actions, continue playing a central role in the dynamics of the cryptocurrency market.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day when the impacts are felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.