The Commodities Futures Trading Commission (CFTC) has sued Binance, the biggest cryptocurrency exchange in the world, and as a result, there is a lot of uncertainty right now in the cryptocurrency market. After an impressive rally, Bitcoin is now fighting to rise above the $27,000 level following yesterday’s 5% decline.
Amid the chaos in the market, Bitcoin miners have started to dump their BTC holdings. According to the Bitcoin Miner to Exchange Flow measure, on Tuesday, miners transferred about 1700 BTC to cryptocurrency exchanges. With a sell-off of nearly 3K BTC on January 19, this is the second-largest sell-off by miners YTD.
Also, according to the Bitcoin Miner Reserve statistic, miners’ holdings of BTC have declined. It shows that miners have begun to sell their Bitcoin holdings which will cause a decline in the price of Bitcoin. The Binance mining pool moved 1646 BTC to the Binance exchange, according to data from the Bitcoin Miner to Exchange Flow for Binance Pool.
Will Bitcoin experience a notable decline?
The largest cryptocurrency’s price has dropped 2% in the past day to $26,817, its lowest level since almost two weeks when its most recent surge gained pace and drove prices to approximately $28,500, their highest point since last June.
The latest decline is only a glitch in an otherwise strong trend; Bitcoin has increased from $16,500 at the beginning of the year amid a rally that has given hopes for a new bull market.
Popular analyst Rekt Capital claimed that it would just need a BTC closure below $27,000 within a daily timeframe to start the breakdown process. While the price of bitcoin is now staying at $26,500, uncertainties and the monthly close, however, increase the chance that the price of bitcoin will retake the 200-weekly moving average (WMA).
Source: https://coinpedia.org/bitcoin/bitcoin-miners-dump-their-holdings-will-it-ignite-a-sell-off/