Bitcoin and other coins faced some continuous price corrections that surprised many. Several analyses foresaw asset price going higher, but the volatile nature ran its course. Since Tuesday, cryptocurrency prices keep fluctuating, with unpredictable gains or drops. When price corrections like this happen, people linked it to the intense selling pressure from the miners.
While miners sold BTC in the past few days, the space recognized the players for selling heavy amounts, which adversely affects asset pricing. Crypto analysts saw through charts and asserted that the miners did not cause the recent slurp. Even with their opinion, reports show that the Bitcoin miners keep selling BTCs, significantly since its price rose.
Analysis of miners transfers to exchanges
The reports revealed that Bitcoin miners have a regulated amount of coins they transfer to exchanges weekly. The analysis explained that the amounts sent has been consistent even with Bitcoin’s surge some days ago. However, the interesting issues that came up concerning the transfers happened before the price drop.
Charts show that presently, the miners sold only 1,200 coins to cryptocurrency exchanges weekly, and based on that, not much changed. An analyst hinted that inflows and outflows from miners are consistent. It’s safe to note that around boxing day to Dec 30, charts show a slight decrease in BTC supply.
Based on reports, experts opined that the decreased supply is not the reason for the price drop, primarily since BTC prices increased after that period. So, through Dec 31 and the first week of the new year, the digital asset kept surging and hitting new highs at different points before its recent drop.
Despite thousands of coins missing from mining wallets, exchanges receive very small compared to the usual average. The small amount of BTC eventually sent cannot significantly cause a correction, according to reports.
Pools explain that they are keeping their assets
Many people think that mining pools are a significant factor in the industry’s current price crash, but the mining pools say that they aren’t selling their holdings. The mining pools reveal that they are accumulating cryptocurrencies, thereby aiding the bull market.
A top authority in the mining industry explained that miners are causing the price dip to be false. Another expert revealed that he believes that most selling from miners is to pay for running. He added that when crypto faces increment, they sell lesser since few could cover up their previous profits.
Analysis reveals that the cause of the correction is mainly profit-taking by high-income investors, which would lead to depreciation of assets. Notable exchanges reported increased trading volumes over the past few days since the asset peaked. Investors want to secure their profits because the asset’s volatility might cause a price crash that would hurt the profit margin.
Miners now control the amount of BTC that flows in the community to increase scarcity, leading to higher prices and more significant profits for them. The analysts concluded by assuring that miners’ selling pressure is not a reason for the drop.