Copy link
Increase text size
Decrease text size
Link copied

Next Bitcoin bull run won’t be derailed by BTC miners selloff

While BTC miners selling their holdings might have contributed to the current crypto market slump, they won't be able to stop the next bull run of the cryptocurrency.

Image by 3D Animation Production Company from Pixabay

Mon, 21 Sep 2020, 04:45 am UTC

Bitcoin managed to breach the $12,000 mark last month but a correction soon followed and pushed the price back down where it even briefly traded below $10,000. However, an on-chain analyst believes that selling pressure from Bitcoin miners won’t be able to stop BTC’s next bull run.

After climbing past $12,000 last month, the largest cryptocurrency by market capitalization took a beating and fell by 13 percent since its mid-August price, according to Cointelegraph. Historical data show that some BTC miners actually started unloading their holdings which created a selling pressure.

On-chain data analysis firms are monitoring market movements of Bitcoin miners as they could significantly affect the price of the cryptocurrency. “There’s only two unmatched sell pressures on the market. (1) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation,” on-chain analyst Willy Woo said. “And (2) the exchanges who tax the traders and sell onto the market.”

With their massive BTC holdings, miners and whales sometimes create selling pressure which could trigger a market correction. In fact, the current slump in the crypto market has been attributed to the two groups, according to Cointelegraph.

Bitcoin’s price dropped from $12,486 (August 17) to $9,813 has been attributed to the selloff by the two groups. During that period, several whales and miners sold BTC at around $12,000.

However, CryptoQuant CEO Ki Young Ju believes that continued selling won’t get in the way of a bull run. The reason is that the intensity of miners’ sell-off is not strong enough. “Miner Update: Some miners began selling at the end of July, but I think in the long-run, miners didn't sell BTC large enough to stop the next bull-run,” Ki Young Ju said.

Data from ByteTree reveal that miners have been selling around $1.362 million worth of Bitcoin per week in the last 12 weeks on top of the BTC the mined and sold. While this is indeed a substantial amount, Ki emphasized that it’s enough large enough to affect any future runs.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • thomkillus
  • 2020.09.21 11:48:02
Hi! If you're interested in trading cryptos I'd highly recommend to consider invest on people's project. You can trade like cryptos or stocks people's projects on this platform called you can buy/sell creators' personalized coin according to market behavior and get revenue doing so.
  • 0
  • ·
  • 0
  • Bitcoin (BTC) $13,091.60 (+0.53%)
  • Ethereum (ETH) $406.53 (-0.78%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $268.91 (-0.64%)
  • Chainlink (LINK) $12.17 (-2.66%)
  • Bitcoin (BTC) $13,091.60 (+0.53%)
Feb 21, 2020 (Friday)
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
Brazil to launch new payment system in response to cryptocurrencies
Digital currency exchange Coinbase Pro lists Kyber Network token
Norwegian Air to soon start accepting crypto payments
Swedish central bank begins CBDC pilot with Accenture
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
Telecom companies complete cross-carrier mobile payments using blockchain
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
South Korean ICO project discontinued, to return $7.5M to token holders
Samsung maintains crypto support in soon-to-launch Galaxy S20
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
Coinbase becomes first crypto company to receive Visa principal membership
Dubai Economy and six banks launch KYC Blockchain Consortium
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.