Bitcoin Briefly dumps on Miner Liquidation
Ki-Young Ju, the CEO of Crypto Quant is bearish on the immediate termciting whales influx to cryptocurrency exchanges and miners dumping their coinbases. Explaining yesterday’s rejection and selloff from 2020 highs, he explains that a lack of a follow-through and lower lows today may spark further losses as whales unload.
A big part of Bitcoin and crypto is determined by the activity of miners. As long as miners play a key role in the Bitcoin ecosystem, their decisions often have an impact on BTC prices. After Nov 30 highs, Ki said whales started moving their assets to cryptocurrency exchanges while miners’ coins were tracked to ramps where they were sold. By liquidating, miners meet their operational expenses. On the other hand, whenever they refrain from selling, the market interprets their decision as bullish and an expectation of better prices in the medium term.
Impact on the BTC Price:
Bearish. For buy trend continuation, bulls must drive BTC prices above $20k. That will confirm gains of H1 2020 and build a foundation for $21k or better. However, high volume correction from spot levels may spark further selloffs back to $13.5k or worse in the coming weeks.
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