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December 5, 2022
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Bitcoin dump: miners start selling 9,000 BTC, possibly opening a new “bear market”

Bitcoin saw its attempts to exceed 10k be thwarted yesterday with a sudden drop in prices

On Tuesday, Bitcoin miners transferred almost 3,000 BTC, worth $ 28 million, directly to exchange portfolios. Thousands more were probably transferred through OTC operations. Direct exchange transfers represent the largest Bitcoin (BTC) flow from miners to these platforms in more than a year, according to data from Glassnode.

Most of the 2,650 BTC volume was sent to Bitfinex, the company said. Miners who transfer funds in bulk to cryptocurrency exchanges usually indicate their intention to sell.

The big transfers coincided with a sharp drop in the price of Bitcoin on Wednesday, dropping to around $ 9,200 when it cost $ 9,700. Previous transfers of large-scale miners to exchanges were preceded by a sharp drop in the value of Bitcoin, opening a bearish cycle. It is not yet clear whether the most recent transactions will have a similar effect.

Glassnode’s data excludes over-the-counter business – common operations with Chinese mining pools. However, numbers from elsewhere show that Bitcoin miners may have started selling much larger quantities of the main cryptocurrency.

According to Cryptoquant, an on-chain monitoring service, more than 9,000 BTC valued at around $ 86 million were handled on Tuesday, quite possibly through OTC transactions, as mass transfers did not correspond to similar increases exchange balances.

The last time miners handled such a significant amount of Bitcoin was on December 26, 2019, with a total of 14,800 BTC, the company reported. Mining pools like Poolin and Haobtc accounted for the largest share of the most recent transfers, sharing up to 7,100 BTC transfers between them.

“There has been a huge increase in mining output overnight, I am expecting a lot of sales, starting soon,” tweeted crypto analyst Cole Garner. “This is probably an over-the-counter deal, as flows do not appear to be moving towards exchanges,” he added.

At the time of this writing, Bitcoin is trading at $ 9,273, betraying the optimistic expectations of the cryptocurrency community of a rise above $ 10,000, the level considered key to triggering a huge price hike.

Source: NewsBitcoin.com

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