The cryptocurrency market recorded a massive drop on Friday. Thus, it caused major cryptocurrencies to lose key support, seeing new monthly lows. As the Bitcoin price drops to almost $21,000, miners are selling a large amount of BTC.
Bitcoin miners sell 6,000 BTC, taking advantage of short-term bullishness
Despite the entire cryptocurrency market trading in the red again, the short-lived rally earlier in the week resulted in many Bitcoin (BTC) miners taking the opportunity to make some profit for themselves. Crypto analyst Ali Martinez confirms that miners are selling massive amounts of Bitcoin by looking at the on-chain metrics he got from CryptoQuant. According to the data, Bitcoin miners have sold 5,925 BTC in the last two weeks.
Considering the Bitcoin price, which is currently trading at $21,429.62, the amount of BTC sold is over $125 million.
#Bitcoin miners appear to have taken advantage of the recent upswing to book profits. Data shows that miners sold 5,925 $BTC in the last two weeks, worth roughly $142 million. pic.twitter.com/slcO7SstOZ
— Ali (@ali_charts) August 19, 2022
Miners follow market trends closely
Meanwhile, data shows that public Bitcoin mining companies sold 6,500 of their holdings in July. This amount is 60% less than the approximately 14,600 in the previous month when they had to sell their BTC to continue their operations. Cryptocurrency expert Michaël van de Poppe was among the analysts who drew attention to the data. The analyst was completely unaware of what would happen when he posted his latest tweets. Poppe interpreted $23,800 and $23,000 as long positions in his recent analysis.
Is Bitcoin in the hands of the bears again?
Bitcoin has failed to sustain the two-month bullish momentum since May 27. This is because it left the $70 billion total crypto market cap in a single day. The leading cryptocurrency lost $30 billion alone. Thus making it clear that the strength of the bulls has already lost its strength. This development is causing pessimism among analysts and investors. Stating that Bitcoin will correct further and reach $ 10,000, technical analyst Kevin Wadsworth failed in his bull predictions.
At the time of writing, Bitcoin is trading around $21,400, down 8.71% on the day, according to data from CoinMarketCap. Meanwhile, the depreciation since last week has exceeded 10%. The largest cryptocurrency currently has a market cap of $419.78 billion. Ethereum, BNB Coin, XRP, and Cardano follow at similar rates. Filecoin and Flow were the top losers of the day with almost 20%.
