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Bitcoin made a slight recovery over the weekend, but remained pinned down against a seasonal low of $27,360. What’s behind the latest slump?
According to crypto market analysis firm CryptoQuant, the downward pressure in prices could be from miners.
The miners ‘unloaded their bags’
one in Post From BaroVirtual on Saturday, the analyst said that miners have been reducing their holdings significantly since May 5, with miner net position change turning negative on May 9. The metric gauges how much the miner reserve is growing – or shrinking – each day, helping to measure whether miners are HODLing or selling their newly mined coins.
The chart shows that miners were accumulating massive amounts of bitcoin from mid-March to mid-April, after which a wave of selling pressure helped push the asset from below $30,000 to below $27,300 within three days.
Selling pressure has remained largely constant to date, resulting in bitcoin tumbling At a multi-month low of $26,260 on Friday.
BRC-20 Fee Spike
Before bitcoin’s decline last week, miners had a field day in new revenue derived from the new hype surrounding Ordinals and BRC-20 tokens, which are bringing Ethereum-like utility (NFTs and tokens) to bitcoin.
event too drove up Bitcoin fees, like Ethereum, reached an average of $30 per transaction on 8 May. These fees went directly into the miners’ pockets, providing a substantial bonus on top of the 6.25 BTC they typically earn per block.
Miners’ net positions briefly turned positive during the BRC-20 hype days, but quickly turned negative after fees were normalized. Thankfully for the bulls, the cryptoquant has reason to believe that the selloff will end soon.
“Currently, miner net position values are in the area where bitcoin bounced in the past, and the local uptrend continues,” BaroVirtual explained. “In this regard, it can be assumed that miners may reduce their pressure, i.e., slow down or cancel the selloff once bitcoin hits the $24,000 target.”
in one Interview Last month, cryptocurrency analysts pointed out crypto potato Bitcoin price could return to its previous all-time high of $69,000 early next year as institutions buy in late 2023.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
Bitcoin made a slight recovery over the weekend, but remained pinned down against a seasonal low of $27,360. What’s behind the latest slump?
According to crypto market analysis firm CryptoQuant, the downward pressure in prices could be from miners.
The miners ‘unloaded their bags’
one in Post From BaroVirtual on Saturday, the analyst said that miners have been reducing their holdings significantly since May 5, with miner net position change turning negative on May 9. The metric gauges how much the miner reserve is growing – or shrinking – each day, helping to measure whether miners are HODLing or selling their newly mined coins.
The chart shows that miners were accumulating massive amounts of bitcoin from mid-March to mid-April, after which a wave of selling pressure helped push the asset from below $30,000 to below $27,300 within three days.
Selling pressure has remained largely constant to date, resulting in bitcoin tumbling At a multi-month low of $26,260 on Friday.
BRC-20 Fee Spike
Before bitcoin’s decline last week, miners had a field day in new revenue derived from the new hype surrounding Ordinals and BRC-20 tokens, which are bringing Ethereum-like utility (NFTs and tokens) to bitcoin.
event too drove up Bitcoin fees, like Ethereum, reached an average of $30 per transaction on 8 May. These fees went directly into the miners’ pockets, providing a substantial bonus on top of the 6.25 BTC they typically earn per block.
Miners’ net positions briefly turned positive during the BRC-20 hype days, but quickly turned negative after fees were normalized. Thankfully for the bulls, the cryptoquant has reason to believe that the selloff will end soon.
“Currently, miner net position values are in the area where bitcoin bounced in the past, and the local uptrend continues,” BaroVirtual explained. “In this regard, it can be assumed that miners may reduce their pressure, i.e., slow down or cancel the selloff once bitcoin hits the $24,000 target.”
in one Interview Last month, cryptocurrency analysts pointed out crypto potato Bitcoin price could return to its previous all-time high of $69,000 early next year as institutions buy in late 2023.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
