TL;DR
- Bitcoin miners have sold the equivalent of five days of production in just 72 hours, liquidating 2,300 BTC worth approximately $145 million dollars.
- The selling trend began after the last halving in April, increasing economic pressure on miners and leading to a significant drop in their revenues.
- The situation has intensified with recent BTC sales by the governments of the United States and Germany, as well as the imminent repayments to Mt. Gox creditors.
Bitcoin miners have sold the equivalent of five days of production in just 72 hours, reflecting significant selling pressure in the market. A trend that has alarmed investors, as 2,300 BTC were liquidated in the last three days, an amount reaching approximately $145 million dollars, as reported by Ali Martinez.
The massive sell-off is part of a trend that started after BTC’s last halving in April. Halving halves the reward for mined blocks, thereby reducing rewards. This has put considerable economic pressure on miners. Since then, revenues have fallen to alarming levels, leading to warnings of capitulation that now seem to be materializing.
In the past 72 hours, #Bitcoin miners have sold over 2,300 $BTC, valued at approximately $145 million! pic.twitter.com/swXl61VqkB
— Ali (@ali_charts) July 2, 2024
The situation worsened with recent sales by various governments. The United States government has begun to liquidate part of its Bitcoin reserves. Germany, in particular, has transferred more than 2,332 BTC since July 1st, an amount exceeding $145 million dollars. Sales by governmental entities have intensified pressure in the market, which is already experiencing significant volatility.
The German Government transferred 832.7 $BTC($52M) out again 35 minutes ago, of which 282.7 $BTC($17.65M) was transferred to #Bitstamp, #Coinbase and #Kraken.
German Government currently holds 43,859 $BTC($2.74B).https://t.co/uBaH2Wtxev pic.twitter.com/f15sht8Npc
— Lookonchain (@lookonchain) July 2, 2024
Bitcoin at a Crossroads: Mt. Gox Repayments
In addition, repayments to Mt. Gox creditors, set to begin this month, could further increase selling pressure. The exchange’s funds, valued at approximately $8 billion dollars, could be liquidated by creditors, introducing a massive amount of BTC into the market and boosting volatility.
The combined effect of the aforementioned factors has led to a drastic drop in the network’s hash rate, an indication of miners capitulating and seeking short-term exit strategies. Analysts anticipate that this selling behavior will continue.
It is crucial for investors to remain vigilant and prepared for a month of high volatility. Massive BTC sales could continue to exert pressure on Bitcoin prices, affecting the market in unpredictable ways.
