- Bitcoin dropped $1,450 yesterday as miners sold stacks on Bitcoin
- The price hit $9,960, the lowest for over a month
- Miners previously sold out in large quantities earlier in the year when Bitcoin was struggling to get above $10,000
Bitcoin dropped $1,450 in 24 hours as miners divested themselves of stored up BTC, starting a cascade that sent Bitcoin down to its lowest point in over a month. The crash, which saw Bitcoin fall through support that had held since early August, was likely precipitated by Bitcoin miners who appear to have sold in bulk in a repeat of what we saw in June when Bitcoin crashed $1,000 in 24 hours.
Bitcoin Loses Month-long Support
Bitcoin has been struggling to cross $12,000 and remain there for the past month, although it has recently been able to count on $11,000 as a support zone. It broke through this yesterday however and dropped down to $9,960 before rebounding:
A precursor to the Bitcoin selloff was large amounts of BTC being transferred from wallets associated with Bitcoin mining firms to exchanges, with movements of ₿1,500 coming thick and fast:
These movements didn’t go unnoticed by the community, with more than one observer picking up on the transfers:
A lot of miners have decided to start unloading large amounts of BTC in the last couple of days. Unclear why now. Keep an eye on large BTC transactions to OKEx
— Larry Cermak 👨🍳 (@lawmaster) September 3, 2020
The resultant price crash was therefore very likely to do with exchanges irresponsibly selling their Bitcoin in one hit, something that was noticed by blockchain analyst Ki Young Ju:
Whenever miners send an unusual amount of #BTC to exchanges…https://t.co/YFo68M4C7N pic.twitter.com/Fg41xIHm9A
— Ki Young Ju (@ki_young_ju) September 3, 2020
Ju made the same pronouncements when Bitcoin endured a similar crash in June as it suffered a $1,000 drop which he put down to a lone mining pool selling thousands of BTC on the open market.
Despite many setups being ruined, the good news is that there was no fundamental reason for Bitcoin to crash, representing a great opportunity to pick up some cheap coins for the bounce that will hopefully come the way of the markets once the dust has settled on this drop.
