Bitcoin miners, who have barely made a living in recent months, have been in a difficult situation after the Binance-FTX crisis. The new data shows that whales are opting to sell as the BTC price returns to November 2020 highs.
Bitcoin whales sold 140,000 BTC in the last two weeks
Stock market crashes are becoming a historical trend that comes to the median in the late Bitcoin bear market. A similar event had occurred around Mt.GOX during previous bear cycles. Then we saw Bitmex and now FTX approaching bankruptcy.
The FTX crisis, which caused a drop of almost 15% to 20% for the cryptocurrency market, is forcing the bulls to work extremely hard. For now, the market found some opportunity to recover after reaching the lowest levels in recent years. However, according to historical data, they still have a chance to take another step down. The new data shows that whales and miners prefer to sell against the current market trend. Thus, BTC has experienced about a billion realized losses in the last few months. Whales holding 1000-10,000 BTC sold around 140,000 BTC. On-chain analyst Ali Martinez says these sales amounted to $2.24 million in fiat terms.
#Bitcoin whales holding 1,000 to 10,000 $BTC have sold or redistributed around 140,000 #BTC in the past two weeks, worth roughly $2.25 billion. pic.twitter.com/NJWoppUNeP
— Ali (@ali_charts) November 10, 2022
BTC price was in the $20-21,000 range for about a week before the FTX crisis. Meanwhile, the amount of BTC in whale wallets was more than $4.93 million. The price fell as the market turned negative, which led to a sharp drop in whale stocks. Current data shows that whales are currently holding more than $4.7 million in BTC.
Miners are also very cautious
Along with the shrinking whales, the miners had to gradually deplete their reserves. Miners had a hard time in the last drop to $15,682.69. As a result, miners have lost around 3000 BTC from their reserves in the past few days. Ali Martinez says this trend is directly related to the FTX thing:
Bitcoin miners seem to be mindful of FTX news. On-chain data shows that BTC miner reserves have dropped by about 3,000 BTC in the last two days and are worth around $48 million.
#Bitcoin miners appear to be taking #FTX news with caution. On-chain data shows that #BTC miner reserves dropped by roughly 3,000 $BTC in the last two days, worth around $48 million. pic.twitter.com/k91AIlVfCc
— Ali (@ali_charts) November 10, 2022
As Kriptokoin.com, we have stated that Core Scientific, one of the largest Bitcoin miners in the world, is about to go bankrupt. After that, miners are now struggling in more difficult conditions than before, as FTX-Alameda Research’s problems caused so much market fear. Some analysts are unsure if the market can recover quickly.
Peter Brandt is still very hopeful for Bitcoin despite falling below $16,000
In his most recent tweets, the senior analyst identified new lows for BTC below $15,000. Brandt’s biggest concern right now is that no previous bear cycle has ever brought prices below the high of the previous bull cycle.
It should be noted that the current decline in Bitcoin as of today's low is only the fifth worst bear market in history. An 80% decline would be 13,800 and an 85% decline would be 10,350. pic.twitter.com/84w8r9KeBf
— Peter Brandt (@PeterLBrandt) November 9, 2022
Brandt refers to the fact that Bitcoin has dropped below the $21,000 price level, which was the ATH of the 2017 bull run and is considered an unbreakable support level. However, historical data shows that this situation gives different results from time to time.
During the fall in 2015, BTC was trading at $259 in April 2013, reaching a price level of $150. If Bitcoin repeats the same pattern, its price should reach the $11,300 level and then enter a consolidation that will act as an accumulation period. Before making a note about the unprecedented market conditions, Brandt showed eye-catching statistics about the latest drop below $16,000, saying it wasn’t the hardest drop BTC has ever seen.
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