Wall Street likely behind Bitcoin dips — not crypto miners
Cryptocurrency miners aren’t keeping the price of Bitcoin down — it’s probably Wall Street fat cats dumping on the retail crowd.
Data from blockchain crew Glassnode (and shared by CoinDesk) shows Bitcoin miners are on track to send just 1,200 BTC ($46 million) to exchanges this week.
That’s way below the average since July 2020, and far under what’s required to move markets in any meaningful way.
For scale, $9.7 billion worth of BTC has transacted on crypto exchanges in the past day — which means weekly transfers from miners to exchanges represent less than 1% of BTC traded on any given day.
On-chain data does point to a four-day period at the end of December, when around $567 million worth of Bitcoin flowed out of mining wallets (equal to around 1% of their total holdings).
It’s tempting to link Bitcoin’s correction of up to 29% in early January to those outflows.
But again, Glassnode’s data doesn’t support that theory. The firm reported exchanges received just 11% of that Bitcoin.
[Read more: Crypto funds took profits as Bitcoin hit record high, report]
So, if not miners, who’s stifling BTC? CoinDesk rightly posited it could be the Wall Street types — who’ve spent months whipping the media into a frenzy by predicting it could hit anywhere from $146,000 to $1 million.