While the leading cryptocurrency Bitcoin forced $ 12,200 a few days ago, it dropped below the $ 11,000 level again today with the sharp decline. Although there are some predictions for this sharp drop in Bitcoin, the data on the network reveal a “very likely” situation. Could the bitcoin price fall sharply due to heavy sales from miners on the network?
Miners Triggered the Bitcoin Drop
Although cryptocurrency analysts revealed that the decline was due to the sharp increase seen in the US Dollar Index today, another reason appeared on the horizon. In the analysis published by blockchain research firm CryptoQuant, it was stated that miners made BTC transfers in amounts not seen for a long time.
Miners are moving unusually large amounts of #BTC since yesterday. #Poolin, #Slush, #HaoBTC have taken the bitcoins out of the mining wallets and sent some to the exchange.https://t.co/NcLmXvZmOD pic.twitter.com/N3E3mX4QKn
— CryptoQuant (@cryptoquant_com) September 3, 2020
Researchers studying the movements of Poolin, Slush and HaoBTC, which are the largest Bitcoin mining pools, proved that serious BTC transfers were made just before the price drop. When looking at Poolin’s wallets, it is seen that 641 BTC before the drop, 590 BTC when looking at Slush, and more than 1,000 BTC when looking at HaoBTC.
It is estimated that this pressure created by mining pools triggers short, that is, decline-oriented positions in leveraged trading platforms. In other words, the decrease in the spot market affected leveraged transactions and leveraged transactions again affected the spot market. It is stated that the BTC price has entered a sharp downward trend for exactly this reason.
This sharp decline led analysts to make rather vague statements about bitcoin price predictions.