Bitcoin’s price took a steep tumble early this week, driving over $300 million in crypto market liquidations in a single day. Why the sudden volatility?
Gayatri Choudhury, Quantitative Research Analyst at Bitwise, says there have been two key drivers of the selloff – and neither relates to the Bitcoin ETFs.
Miners Are Dumping
The analyst first noted on Tuesday that the activity of Bitcoin miners – a cohort “often overlooked” by market watchers. Since the fourth Bitcoin halving in April, the network’s miners have been consistently selling their BTC amid much lower revenues and historically high competition from global competitors.
“On June 9, >3000 BTC were transferred from mining pools to Binance, marking a two-month peak,” Choudhury said. Citing a CryptoQuant dashboard, the analyst noted that heavy selloffs of the sort tend to correlate with downward price action, such as in mid April directly after the halving, or in late May.
CryptoQuant published a report earlier
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