Analytics / Forex and Crypto News
After the price of Bitcoin reached a new all-time high of $42000, it began to decline. From January 8 to January 12, the price of Bitcoin dropped to $30000. Many analysts argued that this price cut was triggered by miners.
Experts said that mining pools started selling off, which ultimately led to a negative correction in the market since, after BTC, the price of altcoins also began to fall.
However, as stated in a joint study by Coin Desk and Glassnode, the recent drop in Bitcoin price was not caused by miners.
Researchers found that mining pool sales have been stable over the past few months. Therefore, there was no reason on the part of the miners to reduce the price of Bitcoin.
Their actions did not cause a fall in either November or December. On the contrary, the market has shown growth in these months. Since July 2020, miners have sent, on average, 2100 coins to exchanges daily. The latest data shows that there are no strong sales from the pools.
The miners' actions did not threaten the market in any way. All of their sales did not put any pressure on the market, since the volume of cryptocurrency entering the exchanges was very low compared to other trading participants.
Even if they decided to sell all their coins brought to trading platforms, the share of BTC controlled by them would not exceed 1.3% of the total daily cryptocurrency volume. Leading pools F2Pool and Lubian, by contrast, have been hoarding Bitcoins over the past eight months.
Glassnode analysts concluded that American investors pushed the market into the red zone. They began to move en masse to profit-taking. The change in tactics caused such a shock drop in the value of bitcoin and other cryptocurrencies.