Are Miners Responsible for Bitcoin Decline?

According to analysts, miners' moves directly affect the current price of Bitcoin. Mike Alfred, co-founder and CEO of data analytics company Digital Assests Data, suggested that miners triggered the negative movements seen in the Bitcoin (BTC) price recently.

Alfred, in his statements on 1 July; ‘It's hard to say for sure, but the actions of miners seem to have a direct and real-time impact on the price,’ he said. Referring to the transactions made on the 23rd of June, ‘We saw miners sell 300 per cent more BTC than what was produced that day. This is especially evident on the 23rd of the month,’ he said.  

Miners' sales and Bitcoin price chart. (Courtesy of Digital Assets Data)

Different behaviours observed on the 18th of June

‘Rolling MRI, that is, miners selling their BTC stocks, has dropped significantly since the halving process. So miners were seen to hold more BTC than they produced.’

Alfred stated that miner sales were in flight on 23 June. He emphasised that it could be one of the reasons for the Bitcoin price drop.

Attention on Indicators

Bitcoin has been largely flat for the past two months. According to TradingView.com data, the asset climbed to $ 9,780 on 22 June and then started to move with an average of $ 9,085 in the following days.  The 200-day moving average is currently around $ 8,360. Bitcoin fell below $9,000 again shortly before the news was prepared for publication and is currently trading around $9,100.