Miners Sold Off 10,000 BTC In a Day: How Did Bitcoin React?
In one day, miners sold 10,000 Bitcoins, totaling $450 million.
This sell-off was a significant daily decline over the past year. Overall, miners' Bitcoin holdings are at an all-time low since July 2021. CryptoQuant estimated that miners sold 10,233 BTC, totaling $450 million. Saving up and selling off is a common practice for miners. By some estimates, miners started accumulating their holdings in mid-2023. Still, the current sale seemed aggressive to market participants, and they pondered about possible causes and consequences.
One of the main reasons for the mass sale was a 33% drop in hashrate from 606 EH/s to 401 EH/s due to abnormal cold weather in Texas, which is one of the major mining centers. State regulators have asked local miners to disconnect from the power grid. Basically, hashrate affects the profitability of miners. And its drop has raised community concerns about network security ahead of the halving.
Bitcoin reaction and price forecast
The massive sell-off of miners' stocks had a minor impact on Bitcoin. The asset's price has declined by 0.77% over the past 24 hours and at the time of writing it reached $42,340.
Source and Copyright © TradingView
Bitcoin's weekly drop amounted to 10.31%. The Bitcoin ETFs fever seems to have come to an end, as the second week of trading did not allow the asset to rise.
From a technical perspective, Bitcoin is currently trying to break above the $42,500 resistance level. If the bulls are able to keep the price above $42,340, Bitcoin may head towards the serious resistance level of $44,000. Further upside could be talked about when Bitcoin crosses $44,250. In the negative outlook, if the bulls cannot keep Bitcoin above $42,250, it will continue its fall to support levels of $42,120, $41,450 and $40,000.
This is not a 100 percent statement. The cryptocurrency market is very volatile and unpredictable. Do your own research.
