Bitcoin (BTC) Tanks Over 10% Below $36,000 Amid Huge Miner Selling Pressure
Finally, after an unprecedented rally during the first complete week of 2021, the BTC price has entered correction tanking more than 10% and slipping below $36,000 levels. At press time, Bitcoin (BTC) is down 11.58% trading at $35,734.
The recent Bitcoin (BTC) price correction comes after two days of price consolidation around $40,500 levels and amid a huge selling pressure coming from miners. As per the data from CryptoQuant, the Bitcoin Miner Position Index (MPI) reached its 17-month high at levels unseen from July 2019.
The last time when MPI reached these levels, the BTC price was trading at around $14,000, after which it corrected 50% by the end of 2019. As we can see from the charts, soon as the MPI levels crossed 11.5 levels this time, BTC has entered a sharp correction of 12%.
However, CryptoQuant CEO Ki-Young Ju explains that the miner selling pressure has been building up over the last month. It is just that Bitcoin continues to receive major backing from institutional buying.
Institutional Bitcoin (BTC) Purchase on Hiatus
As we have recently seen, there’s an unprecedented institutional demand for BTC that has been offsetting the selling pressure.
But if we see the Grayscale Bitcoin Trust (GBTC) chart by Bybt, it looks like institutions have gone on a hiatus for the moment. After December 25, i.e., when BTC was at $24,000 levels, Grayscale has made no additional purchases, and its total holdings remain the same just above 607K Bitcoins.
Ultimately, it seems that the miner selling pressure has overweighed the BTC buying/holding momentum and we are now seeing a profit booking. As per historical trends, the BTC price has always corrected 30-40% from its new high levels, however, some analysts believe that the institutional participation in BTC, unlike before, will hold up the correction only to 10-15% and we can see fresh buying anytime soon. Also, the BTC mega-whales have resorted to heavy buying in 2021.
In the 2017 #Bitcoin bull market, corrections found demand after drops from 30-40%
In the current bull market demand seems to appear after corrections between 15-20%.
This is probably indicative of a difference in buyers: retail (2017) vs institutional (today). pic.twitter.com/OfRX28lEco
— Vijay Boyapati (@real_vijay) January 10, 2021
Currently, there’s been major anxiety around Tesla’s participation in Bitcoin after Elon Musk showed interest in BTC. Will companies like Tesla, move part of their company balance sheet or reserve cash in Bitcoin to protect capital. Let us know in the comments below.
- VanEck Registers Lido Staked Ethereum Trust in Delaware, LDO Up 7%
- Fed’s Lorie Logan Urges Caution on Further Rate Cuts Citing Inflation Risks
- Nasdaq-Listed Fitell Adds Pump.fun’s PUMP To Supplement Solana Treasury
- FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading
- Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
