Bitcoin is an asset unlike any other. Not only are prices impacted by normal market participants buying and selling, but miners powering the underlining network with massive BTC reserves can also have an even greater effect.
Several large miners were seen moving “unusually large” sums of BTC overnight, just ahead of the massive market collapse. Could they be responsible for the most recent plummet in Bitcoin price below $11,000? And why are these miners suddenly selling their cryptocurrency when the asset is supposed to be in a new bull market?
Blockchain Data Shows Massive BTC Mining Pool Outflows Ahead of Crypto Market Collapse
When Bitcoin was created, it gave birth to new financial technology. There’s the cryptocurrency itself, and then there is the blockchain network these tokens underpin.
The health and function of these networks, as well as how decentralized they are can have a dramatic impact on the value of an asset.
Take Ethereum Classic for example. Repeated 51% attacks have hindered the altcoin’s valuation. Supply and demand also impact valuations, along with the constant push and pull of market buying and selling.
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The miners that help secure and operate the Bitcoin network, often need to sell the cryptocurrency in order to fund operations. Miners may wait until prices are higher to do so. With Bitcoin trading over $10,000 over