An unknown Bitcoin (BTC) miner seems to have been responsible for the crash experienced by the cryptocurrency market almost 24 hours ago. This is according to Ky Young Ju, the CEO of Crypto Quant, who wrote on twitter how this unknown mining pool sold over 2,293 BTC when bitcoin surpassed $10,100.
Bitcoin Miner Sells Large Amounts of BTC
Bitcoin was able to surpass $10,000 on June 2nd when a few hours later an unknown mining pool decided to sell a large amount of BTC in the market. The pool seems to have sold over 2,293 in the course of the day.
This is similar to what happened on May 20 when Bitcoin was also close to $10,000. Once outflows are registered from this unknown miner, then it is certainly possible to see a price drop on Bitcoin. Most of the times, the miner moves the funds when the market reaches specific price levels.
Significant outflows from the unknown miner before the dip. They're CAPITULATING.https://t.co/WVdBy1t17E pic.twitter.com/1LQeLYpY6X
— Ki Young Ju (@ki_young_ju) June 2, 2020
It is worth pointing out that the mining pool is the fifth largest mining pool in the market after F2Pool, Poolin, BTC.com and AntPool. This shows the importance it can be for the market the movements performed by large mining pools, which – at the end of the day – are those who provide new liquidity to Bitcoin.
Now that Bitcoin has experienced a halving event, the new issuance of coins was reduced to 6.25 BTC from 12.5 BTC. That means that there may be a reduced amount of BTC sent by miners to exchanges. Despite that, miners must sell their coins in order to fund their operations and pay for the necessary expenditures.
While Ki-Young Ju called the sell-off “capitulation” miners have been strategically selling their coins since always. The main question is related to why they preferred to sell all the coins at once rather than doing so over time.
How is Bitcoin Performing?
Now, Bitcoin and the entire crypto market are taking a pause from their bullish trend. On the daily chart, we see that Bitcoin was in an upward channel that seems to have reached an end.
Meanwhile, on the weekly chart, Bitcoin seems to have tested a very important price level when it surpassed $10,200, nonetheless, it remains inside the expected price action for the digital asset.
Yuriy Mazur, Head of Data analytics at CEX.IO, talked with UseTheBitcoin about the current market conditions:
“Bitcoin price reaching $10,000 indicates that on the overall positive wave, investors are distributing money to the cryptocurrency market as well. However, while for most assets in the traditional financial markets there is still sufficient space for upward movement, for Bitcoin, bullish activity is very limited by the gap of strong resistance between $9,900- $10,000 per coin.”
He has also stated that if the positive outlook on traditional financial markets is maintained, we could eventually see Bitcoin surging to around $12,000 per coin in the near future.