Bitcoin Miners Under Pressure: Selling Surges as BTC Plunges to $77.7K

Bitcoin's decline to $77,700 has miners facing increasing financial pressure, prompting a noticeable increase in their transfers to crypto exchanges. Data from CryptoQuant indicates that miners are selling more, as historical market patterns suggest further price declines until active buying stabilizes supply.

https://twitter.com/cryptoquant_com/status/1899425902502568349

Miners dump BTC at local lows

When Bitcoin dropped below $78K, the number of transfers from miners to crypto exchanges increased significantly. A market in decline forces miners to sell their Bitcoin to cover operating costs, which in turn leads to a further drop in the price of BTC. The green bars on the CryptoQuant chart show significant miner activity on exchanges during significant price drops.

Previous price levels where miners actively sold their assets correspond to local market lows according to the chart data. Long-term bearish trends form when miners continue to sell their assets due to a lack of liquidity from buyers.

Why are miners increasing sales?

Several factors influence miners' decisions to increase liquidation of their assets:

Operating expenses

Mining operations require constant funding to cover both operating costs and electricity costs, as well as equipment maintenance. A drop in the price of Bitcoin forces miners to sell additional coins to support their operations.

The Impact of Market Liquidity

The imbalance between miner sales and trader purchases creates additional selling pressure, which drives down market prices.

Potential market implications

The strength of market demand could mitigate the impact of selling pressure on Bitcoin prices, which could lead to a recovery. BTC prices could see further declines as miners continue to maintain current selling levels.

Data from CryptoQuant shows that recent price movements are driven by miner activity, confirming the importance of on-chain metrics in predicting market trends. Short-term market activity shows signs of volatility as miners may continue to test support levels before stabilizing their prices.

The market is closely monitoring Bitcoin transaction logistics and exchange supply trends to determine future price dynamics, while miners are pushing down the current market value.

Source: cryptonews.net