Following the US Federal Reserve (Fed) announcement of an interest rate pause, Bitcoin (BTC) recorded a monthly price peak at $27,500 on September 19. As a result, Bitcoin miners reportedly offloaded $93 million worth of BTC tokens to book some gains following the spike in price on September 20.
Miners Sell 3,495 BTC Following Price Rally
Bitcoin surpassed the $27,500 price mark for the first time in September, a significant milestone for the crypto market. The Fed’s announcement of a rate pause earlier this week sparked this bullish momentum, instilling renewed confidence in the crypto market.
On-chain data provide intriguing insights into the behavior of Bitcoin miners during this period of price uptrend. According to a report by CryptoQuant, Bitcoin miners initially boasted a substantial reserve of 1,844,854 BTC as the price crossed the $27,000 threshold on September 19.
But afterward, the miners capitalized on the price increase, taking advantage of the opportunity to profit from the bullish momentum. During this period, they successfully offloaded 3,495 BTC, which reduced their cumulative balance to slightly over 1,841,300 million BTC.
Moreover, the Miners Reserves platform offers another glimpse into the miners’ activities during this period. The platform is a mining analytic platform that tracks deposit balances of crypto wallet addresses associated with reputable Bitcoin miners and mining pools.
Given BTC’s current market valuation of around $26,607 at the time of writing, the significant drop in the miners’ BTC reserves becomes even more critical. This move implies that miners have sold coins worth $93 million after the latest Fed rate announcement.
Consequently, recent market trends indicate that the situation has triggered a short-term momentum in favor of the bears.
Bearish Speculative Traders React
Due to the miner’s sell-off, the bears have been shelling out high fees to keep their short positions active. Also, BTC funding rates turned negative, reaching a low of -0.002.
This situation deviates from recent trends and represents the most pronounced negative swing in Bitcoin funding rates since August 20, based on data from CryptoQuant. In the crypto space, when Negative Funding Rates appear in the perpetual swaps or futures markets, it usually suggests that those speculating on Bitcoin’s price drop are paying a fee to those on long positions.
Thus, this unusual pattern suggests that the bears are becoming more confident in the asset’s short-term trajectory. Additionally, other market factors like the miner’s outflow can also play a role in this type of funding rate in the future.
A surge in Bitcoin miners’ sales, combined with bearish trends in the derivative markets, could lead to a decrease below the $26,000 mark in the coming days. This view is reinforced by an in-depth analysis of the In/Out of Money Around Price data, which provides insight into the distribution of entry prices among existing BTC holders.
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