Recent on-chain data indicates that the selling pressure from Bitcoin miners has decreased significantly. This decrease is crucial as it could potentially impact Bitcoin’s price as we enter the third quarter of the year. According to Crypto Dan, a crypto analyst who referenced data from CryptoQuant, the reduced selling pressure can be attributed to two main factors.
One reason for the decline in selling pressure is the drastic reduction in the quantity of Bitcoin that miners have been sending to exchanges to sell since May. This decrease in supply being dumped into the market could help stabilize Bitcoin’s price and prevent sharp drops in value.
Additionally, Crypto Dan noted that the volume of the Over-the-Counter (OTC) Desk that miners typically use for selling their Bitcoin has been consumed. This suggests that a buyer has recently purchased all available supply from these miners, leading to a shortage of Bitcoin being sold off-market. The fact that the OTC Desk volume piled up until June 29th further supports this narrative.
Bitcoin miners played a significant role in the price crashes that the cryptocurrency experienced in June. Data from IntoTheBlock revealed that miners sold 30,000 BTC (equivalent to $2 billion) throughout the month, adding significant downward pressure on Bitcoin. The recent slowdown in selling pressure from miners could be a bullish development for Bitcoin and potentially sustain the current bull run.
Analysts like Willy Woo and Michaël van de Poppe have expressed optimism about Bitcoin’s price trajectory following the slowdown in selling pressure from miners. Woo had previously predicted a price recovery once miners capitulate, and van de Poppe believes that a bullish reversal is underway as Bitcoin makes significant moves to the upside. This positive sentiment indicates that Bitcoin may have bottomed out and could continue its upward trend in the near future.
As of the latest data from CoinMarketCap, Bitcoin is trading around $62,900, experiencing a slight decline in the past 24 hours. However, the overall outlook remains optimistic, with analysts predicting further upward movement in the price of the flagship cryptocurrency. This recent development in miner selling pressure could be a turning point for Bitcoin’s price trajectory in the coming months.