Miners turned into heavy sellers again this week, right before our most recent plunge

Do miners know something everyone else does not?

It certainly seems that way at times...

While the rest of the world was celebrating the news about PayPal and Venmo enabling bitcoin purchases for their hundreds of millions of customers, miners will busy transferring bitcoin to exchanges.

Check it out:

(Source: https://twitter.com/ki_young_ju/status/1275719254030061568/photo/1)

What happened right after they sent all this BTC to exchanges?

The price plunged...

Keep in mind that the selling by miners didn't necessarily cause the plunge as there was a ton of help from the US stock markets taking it on the chin as well.

But still, the circumstantial evidence is interesting, miners transfer large amount of BTC to exchanges, price tanks short after.

Keep in mind that normally, miners selling mined BTC and exchanges selling exchange fees are the largest net sellers overall.

After hoarding recently, miners became net sellers for much of the last 7 days:

(Source: https://terminal.bytetree.com/bitcoin)

As you can see above, miners have been selling more coins than they have been mining over the last week.

So, did miners cause that big $700 drop the other day on BTC?

I'd say they didn't cause it per say, but I think they definitely contributed to it.

The market was already weak with what was going on in the stock market and then miners piling on with excess supply didn't help things.

Add it all up and you get a drop that outpaced even the 700 point drop seen in the Dow that same day.

It will be interesting to see what they do from here as miners historically have tended to hoard when markets are weak and sell when markets are strong.

Which we are already seeing play out today as they are holding roughly half the coins mined today instead of immediately dumping them on the market.

On a side note, BTC may be approaching it's most "comfortable price".

(Source: https://twitter.com/ChartsBtc/status/1276213746369585153/photo/1)

Since BTC fist broke above $1k back in 2016, it has spent the most number of days trading between $6k and $9k.

With $6k being the price range that BTC has spent the largest number of days trading at.

As BTC drifts lower into it's "comfort" zone, I will be picking up some more coins in anticipation of the bull market rally I fully expect is coming over the following 18 months.

Bring on the dip!

Stay informed my friends.

-Doc

Posted Using LeoFinance