Profits from Bitcoin Miners won’t stop another bull run
Bitcoin miners have sold large quantities of BTC in the past two months, but analysts at the series believe it won’t stop the next bull run. Historical data shows that some miners began selling bitcoins (BTC) in late July, which increased the selling pressure in the cryptocurrency market.
Finally, the main cryptocurrency has fallen sharply since mid-August, looking at the downturn on 13% since then, BTC has sought to withdraw the $12,000 mark. According to an analyst, sales of released miners may not be enough to stop the bulls from running. Chain data analysis companies closely monitor the movement of miners and whales because they contain large amounts of BTC.
Network analyst said miners are one of two external sources of selling pressure on bitcoins. He first stated, “There are only two insurmountable selling pressures in the market. (1) Miners that reduce supply and sales in the market are hidden taxes on inflation. And (2) stock exchanges that tax traders sell on the market.”
If miners start selling their existing bitcoins, this can lead to improvements in the cryptocurrency market, usually to cover costs. For example, from August 17 to September 5, the price of bitcoin fell from $12,486 to $9,813. During that time, many whales sold bitcoins for $12,000, and similar behavior was observed among miners. Pressure from miners and whales has been linked to the current slowdown in the cryptographic market, but the long-term has stated that stopping long-serving bulls is not enough. If miners suddenly sell a large amount of BTC, this could be a substantial correction, as small price movements can lead to the liquidation of high-profit traders. Therefore, in theory, even relatively small sales of miners can lead to large price fluctuations.
Analyst also says the intensity of the miners sales was not strong enough to avoid bull runs in the future. He said “Some miners started trading in late July, but I don’t think miners have made big sales on BTC for a long time to stop the next bull run.”
According to ByteTree, net stocks of bitcoin miners have fallen by 125 BTC per week over the past 12 weeks. The data show that the miners sold for about $1.362 million a week for which they mined and sold. As mentioned, the data show that the miners sold large quantities of BTC, but not quantities that were not regulated in the normal course of business.
The bull cycle remains likely to stop
Bitcoin is still trading above $10,000 above the critical level of technical support, despite several bears’ attempts to reduce the price below the base level. Bitcoin’s resilience to selling pressure due to a cautious upward trend over time. Several chain indicators also suggest that bitcoin is now in a healthy accumulation phase. This can be a good time to get into the world or cryptocurrency. Bitdenex gives you a hassle free access to register and start with trading.