Bitcoin fell, is it because miners sold it?

According to data from blockchain analysts at Glassnode, 2,650 bitcoins were transferred from bitcoin miners to the Bitfinex exchange the day before, which is the largest amount of bitcoin transferred from miners to the exchange since March 26, 2019.

Based on Tuesday’s prices, 2,650 bitcoins are worth nearly $25 million. Shortly after that, bitcoin experienced a short-lived sharp drop from nearly $9,800 to around $9,300.

The reason for the market decline may be due to the selling of miners or other investors' concerns about the market sell-off. However, Bitcoin currently has strong support around $9,000. Whenever the price is lower than this level, there will be a large number of long buys to push the price back above this level.

However, if we look at history, when miners transfer a large amount of Bitcoin, the price of Bitcoin will continue to rise after a period of time.

The last time this happened, the price of Bitcoin rose 226% in three months, climbing from $3,985 to $13,003. After a huge transfer by miners in 2017, Bitcoin rose from $3,701 to an all-time high of $20,089, a whopping 441% increase.

According to Bitinfocharts, after the Bitcoin block reward halving, miners’ mining profitability decreased by 45%, which may explain why a large amount of Bitcoin flowed from miners to exchanges.

Image source: pixabay

AuthorLiang Che

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