In what appears to be a continuation of the downward movement that started in May, the search is on for the cause. Obviously there is some panic in the market caused by Tesla CEO Elon Musk but also China. Bitcoin (BTC) miners also don’t seem to have such confidence in it for now. This is evident from data from blockchain analysis company Glassnode.
The miner balance chart, shared by William Clemente on Twitter, shows that miners have been saving bitcoin in the previous months. In the past week, that trend seems to have come to an end. Clemente states in his tweet:
“Miners have sold 5,000 bitcoins in the past week.”
The bitcoins together have a value of about $160 million. These are not too large amounts, but the trend reversal may be a signal that miners have lowered their expectations.
Miners are the ones who bring new bitcoins to the market. They receive bitcoin as a reward for the heavy work they do to secure the network and process transactions. When bitcoin miners do not sell their received BTC directly on the market but save them, this is a sign that they expect a higher bitcoin price in the future. However, as soon as they start to sell, this puts additional selling pressure on the price. This is likely contributing to the current downward movement.
Recently, the company behind the famous Norton 360 antivirus software announced that it will let its customers mine ethereum (ETH) with their software. This gives more than 10 million people access to ETH mining.
Tesla, mining, bitcoin and dogecoin (DOGE) have been widely covered in the crypto news in recent weeks. A Tesla competitor is participating and will make it possible to mine dogecoin and bitcoin with their electric cars while charging!