- The leading cryptocurrency Bitcoin (BTC) is going through a tough week, dropping over 1% in the last 24 hours to $27,110.
- The fact that more than 20,000 BTC have been sold within a week represents the most significant event since April.
- Several leading Bitcoin mining companies announced impressive results last month. CleanSpark mined 643 BTC, Riot Blockchain produced 362 BTC.
On Wednesday, the price of Bitcoin fell below $27,000, facing additional pressure; could miners be behind these pressures?
Are Miners Pressuring the Price of Bitcoin?
The leading cryptocurrency Bitcoin (BTC) is going through a tough week, dropping over 1% in the last 24 hours to $27,110. While the ongoing conflict between Israel and Palestine and various macroeconomic factors contribute to Bitcoin’s volatility, a recent large miner sale has raised concerns about its future trajectory.
Today, the crypto analytics firm IntoTheBlock shed light on this issue in a tweet, stating, “Bitcoin miners sold over 20,000 BTC this week, the largest amount since April.”
The company also emphasized the significance of the reasons behind this substantial increase in miner sales, saying, “This shows miners taking advantage of high Bitcoin prices to balance operational costs. While not an unusual scenario, it may add significant selling pressure to the market.”
Although it is a common practice among miners to sell some of the Bitcoin they mine to finance operational costs like electricity and maintenance of mining equipment, the scale of this sale has raised eyebrows.
The fact that more than 20,000 BTC have been sold within a week represents the most significant event since April. The release of such a large amount of Bitcoin into the market can increase selling pressure and have the potential to push prices down.
September Saw Record Profits
However, this increase in miner activity comes after record profits reported by Bitcoin miners in September. Several leading Bitcoin mining companies announced impressive results last month. CleanSpark mined 643 BTC, Riot Blockchain produced 362 BTC, and Marathon Digital Holdings astonishingly mined 1,242 BTC last month.
While celebrating their mining successes, these companies also revealed their plans for the future. For instance, Marathon expressed its focus on growth and plans for international expansion using low-cost renewable energy sources. However, these achievements didn’t come without hiccups as Marathon had an invalidated block mining experience due to transaction ordering errors.
Nevertheless, it’s certain that miner activities can affect short-term price movements. There is optimism that the post-halving selling pressure would largely be depleted and pave the way for a return to a bull market.
