According to reports, Bitcoin mining companies accelerated their BTC sales in June. The accompanying price drop is pushing BTC into historical territory such as the 2017 bull peak or the 2020 pandemic slump bottom.
Glassnode reports that miners are quickly selling Bitcoin
The analytics firm has shown in a new report that there has been a significant increase in the amount of BTC that Bitcoin miners send to exchanges in recent weeks. On-chain transactions by various mining firms reveal that they have transferred a total of 6,671.99 BTC ($174 million) to exchanges since May 31. Specifically, on June 3 alone, several companies posted 2,606 BTC to exchanges. This marks a four-year record level for daily Bitcoin transfers to exchanges.
It is worth noting that the average number of Bitcoins sent to exchanges by mining companies in the last 14 days was 489.26 BTC, the highest level since March 2021. Meanwhile, the BTC balance in miners’ wallets has decreased by nearly 2,000 BTC in just two weeks.
Miner sales are accompanied by falling prices
Bitcoin lost about 3.10% of its market cap on June 14. Intense selling pressure caused serious liquidations in the market within hours. According to data from CoinGlass, $124.2 million was liquidated in the four-hour period after midnight last night.
While Bitcoin made up $37.9 million of these liquidations, $55.3 million came from Ethereum. Together they accounted for about 75% of all liquidations. Meanwhile, Bitcoin price slumped below $25,000.
Data from TradingView shows that the Bitcoin price has dropped 4% in the last 24 hours. The price briefly touched $24,922 yesterday evening before surging to $25,908. At the time of writing, it is struggling to hold just under $25,000.
What’s next?
The US Federal Reserve announced yesterday that it will keep interest rates constant. Mixed signals added additional downward pressure in the already fragile crypto market. Keith Alan of Material Indicators said Fed chair Jerome Powell was “barking, biting” with hawk comments that drove BTC price action below $25,000. Alan states that the Fed will only be content with words.
Alan then made the critical call, “Choose your goals.” The attached chart he shared shows key support zones for BTC/USD since 2018. These include historical regions such as the 2017 bull peak or the 2020 pandemic slump bottom.
IMO, #FED Chair #JPow was all bark and no bite. He telegraphed super hawkish to tame markets, but executed a super dovish pause.
Pick your targets.#BTC #TradFi #Crypto #FUD #MissionAccomplished pic.twitter.com/NRYEceMeZW
— Keith Alan (@KAProductions) June 14, 2023
“More volatility will come to Bitcoin”
Another analyst, DecenTrader, argued that the state of BTC price action could get more interesting. In his analysis published during the day, he stated that Bitcoin is approaching the leveraged long liquidity area.
#Bitcoin is slowly getting closer the the 3x Long Liquidity.
Starts at $23,100. https://t.co/PWkS078rnF pic.twitter.com/b0iPBloAsB
— Decentrader (@decentrader) June 15, 2023
“Again: volatility is coming,” Maartunn, a contributor at CryptoQuant, highlighted:
While the Bitcoin price remained flat, open interest increased by $439 million. Unlike previous events, Funding Rates are showing a near-neutral downward trend. Proposal longs and shorts are (almost) in equilibrium).
According to the analysis of analyst Beste Naz Süllü, whom we quoted as Kriptokoin.com, “Where will we come in Bitcoin with Bitcoin breaking below 25 thousand 800? Currently, we expect a 5.5 percent decrease until 24,500.”
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