Miners may open BTC bear cycle
Experts are concerned about the future of the first cryptocurrency. They suppose that Bitcoin may slump because of miners’ actions. According to on-chain analyst Cole Garner and Ki Young Ju, the CEO of blockchain analytics firm CryptoQuant, a massive outflow from mining pools is having a negative effect on the BTC dynamic.
Cole Garner explains that a significant amount of bitcoin was moved, much of it possibly through OTC trades. The fact could be proved by a rise in the price to $10,000 that was followed by a large shift of the cryptocurrency away from storage wallets.
"There has been a big spike in miner outflows overnight, I’m expecting a whole lot of selling, starting real soon," crypto analyst Cole Garner tweeted. "This is probably an OTC deal, since the flows don’t appear to be going to an exchange," he added.
Ki Young Ju has analyzed miners’ actions and has come almost to the same conclusion as Cole Garner. He foresees a short-term bearish trend in the middle of July. By the middle of the following month, the wave of selling caused by such a massive move of the cryptocurrency from mining pools is expected to decline. Preliminary estimates showed that on Tuesday, June 30, miners transferred 2,935 bitcoins directly into exchange wallets. It is the largest amount in the last year. Notably, on Monday, June 29, only 404 bitcoins were shifted away.
Sharp swings in the outflow amount are making Bitcoin quite vulnerable. The first cryptocurrency is becoming very sensitive to price fluctuations and a falling exchange rate. Earlier, such an outflow of Bitcoin holdings from miners’ wallets was followed by bearish market sentiment.