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Bitcoin Miners reduce selling

Bitcoin miners appear to have slowed their unloading of tokens, indicating that some selling pressure on the token may have subsided.
Bitcoin prices have stabilized around R319K after falling as low as R285K in the previous week. The token now appears to consider R319K to be a support level.

The majority of this drop was also caused by Bitcoin miners selling their holdings. Last week, data showed that miners pushed a record quantity of Bitcoin onto exchanges, resulting in further price drops.

However, following a big sale last week, the selling pressure on the world’s largest cryptocurrency may be subsiding.

Bitcoin miners’ exchange flows have plummeted

According to CryptoQuant data, after peaking last week, transfers from Bitcoin miners to exchanges have declined dramatically. This means that miners’ selling pressure is likely to ease for the time being.

Miners moved up to 4,700 Bitcoin in a single day last week, but only 308 tokens were moved on Monday. This also coincided with a small recovery in Bitcoin prices, which returned to levels above R319K.

Separate Glassnode data suggests that miner net flows have also dropped to a one-month low, indicating little trading activity. In the face of volatile prices, major miners may once again adopt a holding approach.

Bitcoin miners have been selling their shares on a steady basis this year in order to maintain operations, as the profitability of mining has been hampered by a drop in prices.

However, additional negative pressures continue.

While reduced selling by prominent miners may provide some respite to Bitcoin, the token still faces a number of additional challenges.

Major holder liquidations, such as Celsius and Three Arrows Capital, are anticipated to put more pressure on prices. Fears of another slump are also keeping the majority of retail buyers away from the market.

The major drivers of Bitcoin’s decline this year—concerns about increasing inflation and higher interest rates—remain in play, with little signs of abating.

Long-term losses in the stock market are also affecting the coin.

Bitcoin Miners reduce selling

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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