Recent on-chain data is indicating a slowdown in the selling pressure exerted by Bitcoin miners. This has significant implications for the price trajectory of Bitcoin as we progress into the third quarter of the year. According to analysis from the on-chain analytics platform CryptoQuant, the reduction in selling pressure from miners can be attributed to two main factors.
One key factor contributing to the decline in selling pressure is the drastic reduction in the quantity of Bitcoin that miners have been sending to exchanges for sale since May. This decrease in supply being dumped onto the open market has helped alleviate some of the downward pressure on Bitcoin’s price.
Additionally, it has been observed that the volume of the Over-The-Counter (OTC) Desks that miners typically utilize for selling their Bitcoin has been exhausted. This suggests that a significant buyer recently absorbed all available supply from these miners. The OTC Desk volume had reportedly accumulated until June 29th, indicating a lack of willing buyers for these crypto tokens.
Bitcoin miners played a significant role in the price declines that the leading cryptocurrency experienced during the month of June. Data from the market intelligence platform IntoTheBlock revealed that miners had offloaded a total of 30,000 BTC (equivalent to $2 billion) throughout the month. This substantial selling activity added considerable selling pressure to Bitcoin, pushing its price below the $60,000 mark at certain points.
The recent slowdown in selling pressure from miners is viewed as a bullish development for Bitcoin and could potentially prolong the ongoing bull run for the cryptocurrency. Analysts like Crypto Dan have pointed out that these conditions have set the stage for a continued upward momentum for Bitcoin throughout the third quarter of the year.
Various crypto analysts have shared their insights and predictions regarding Bitcoin’s price movements in light of the reduced selling pressure from miners. Willy Woo had previously forecasted that Bitcoin’s price would recover once miners capitulated, leading to a positive trend for the cryptocurrency. Similarly, analysts like Rekt Capital and Michaël van de Poppe have expressed optimism about Bitcoin’s potential to reverse its downtrend and trend upwards.
As of the latest data, Bitcoin is currently trading around $62,900, showing a slight decrease in value over the past 24 hours according to CoinMarketCap. Despite this short-term fluctuation, the overall sentiment remains positive due to the decreased selling pressure from Bitcoin miners, signaling a potential bullish trajectory for the leading cryptocurrency.
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