Bitcoin Price Reaches Four-Month Low as Miners Liquidate Holdings
Bitcoin’s price dropped below $80,000, reaching $77,393, prompting miners to sell off holdings. Increased miner-to-exchange transfers and negative miner netflow illustrate a bearish market trend. Bitcoin’s current value stands at $81,686, with heightened trading volumes posing risks of further declines unless demand increases.
On Monday, Bitcoin experienced a significant decline, briefly dipping below the $80,000 mark and reaching a four-month low of $77,393. This drop triggered many miners to liquidate their holdings, contributing to a bearish market sentiment and exerting additional downward pressure on Bitcoin’s price.
As Bitcoin’s price dropped, miner transfers to exchanges increased dramatically. According to CryptoQuant, the Miner-to-Exchange Flow surged to 11,250 BTC, indicating that miners were selling off their assets, often to cover operational expenses or mitigate losses. This tendency to sell during price declines exacerbates selling pressure and can deepen market downturns.
Current data reflects an ongoing trend of negative miner netflow within the Bitcoin network. The miner netflow metric is currently at -620.01, denoting a larger volume of Bitcoin being sold than bought. Such a negative balance serves as a bearish signal that may precede a further decline in Bitcoin’s price.
Historically, miners sell more coins when prices decrease, seeking to meet their operational needs. As of now, Bitcoin is trading at $81,686, which signifies a 1% decrease in value over the past 24 hours. The trading volume has surged by over 50%, illustrating heightened selling activity. Continued selling could risk pushing Bitcoin below $80,000, potentially declining further to $73,631. However, if demand can absorb the current supply, Bitcoin’s price might rise to $86,601.
The recent decline in Bitcoin’s price below $80,000 reflects miner capitulation, which has led to increased selling pressure in the market. A spike in miner transfers to exchanges indicates that miners are offloading holdings to manage operational costs. As negative miner netflow continues, the potential for further price declines exists unless strong demand emerges to stabilize BTC’s value.
Original Source: beincrypto.com
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