Bearish Sentiment in BTC as Bitcoin Miners Dump BTC At Exchanges

By Bhushan Akolkar and Sunil Sharma
Published January 22, 2021 Updated January 22, 2021
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Bearish Sentiment in BTC as Bitcoin Miners Dump BTC At Exchanges

By Bhushan Akolkar and Sunil Sharma
Published January 22, 2021 Updated January 22, 2021

Bitcoin on-chain analysis is indicating that Bitcoin miners are dumping BTC at exchanges. Earlier, Bitcoin (BTC) tanked more than 13% earlier today going all the way below $30,000 levels. Although BTC has partially recovered and currently trading around $31,000 levels the bearish sentiment continues in the market as per on-chain data. Major points:

  • F2P Pool Miners Dumping Bitcoin
  • 100k BTC set to Expire at Deribit next Friday
  • Bitcoin price Premiums turn Negative at Coinbase

Bitcoin Miners Dumping Bitcoin While Coinbase Premiums Turn Negative

CryptoQuant CE Ki-Young Ju mentions that this dip might have started by the F2Pool Bitcoin miners.

  • Moreover, the on-chain platform also notes that the all-exchange-bitcoin-transactions inflows have gone above 560. Similarly, the all-miner have been heavily depositing at exchanges.

  • Well, we can expect some more Bitcoin selling in the coming time and additional downward pressure on the BTC price. Another bearish signal supporting current bearish sentiment is that another 100K Bitcoins are set to expire at the Deribit Exchange by next Friday, January 29.

  • As reported by CoinGape earlier, BTC price premiums are have turned negative at Coinbase, meaning the buying pressure at Coinbase which was largely driving the bull run has declined. Recent analytics showed that coinbase premium’s were positive throughout the bull run and helped in predicting Bitcoin price movements with rising premiums suggesting high demand and vice-versa.

Are Institutions Buying or Selling Bitcoin?

Grayscale has been on a massive buying spree over the last week. The digital asset manager purchased more than $1.2 billion worth of Bitcoin (BTC) over the last seven days. This purchase comes as Grayscale raises an equivalent amount from its clients.

Also, the assets under management for other Bitcoin products have also increased in recent times.

Ex Goldman Sachs manager and popular investor Raoul Pal has already jumped into the opportunity. He wrote:

“For longer-term HODLers of BTC and ETH this is probably a good time to start accumulating more. Personally, Ive added more ETH and now time to add more speculative crypto. Have not pulled trigger yet as doing some homework on it. Good luck ! Ugly price = opportunity”.

Conclusion

The above reported Bitcoin Miner dumping may be partially due to global shortage of chips which recently hit China’s bitcoin mining industry as reported by reuters. This is leading to rise in Bitcoin mining equipment in China and might suffocate the small miners spread all across China. It seems that large bitcoin mining corporations are clearly ahead in this game as small miners will have no other options except to sell their Bitcoin to keep up with the rising prices of mining equipment.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
822 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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