Impact of Bitcoin Sales by Miners After the Fed Meeting on Bitcoin Price
Date: 2023-09-23 Author: Dima Zakharov Categories: BUSINESS
Impact of Miners' Sales on Bitcoin Price
Events in the cryptocurrency market always attract the attention of investors and traders. In recent days, there has been an interesting dynamic in the price of Bitcoin, related to miners' sales following the meeting of the United States Federal Reserve (Fed). Let's explore the factors influencing this situation and the potential consequences for the Bitcoin price in the near future.
Reasons for Miners' Sales
On September 19, the price of Bitcoin reached $27,500, marking a new monthly high. This increase was expected, considering the anticipation of the Fed's decision regarding the key interest rate. However, what came as a surprise was the selling activity by miners within 72 hours after the Fed's meeting.
According to data from the analytical platform CryptoQuant, miners began selling Bitcoins only after the price reached $27,000. This moment can be seen as pivotal since it coincided with the start of the selling activity. Therefore, miners decided to capitalize on the opportunity to lock in profits, which is quite logical given such a significant price surge.
Impact on the Market
Sales by miners in such volumes cannot go unnoticed in the market. Their actions led to a decrease in the total number of Bitcoins in miners' reserves from 1,844,854 BTC to 1,841,350 BTC. This is a minor but noticeable change that has created a negative sentiment among market participants.
It is especially important to pay attention to changes in the financing of short positions in BTC. Since September 22, the funding rate has returned to a negative value of -0.002. This means that traders holding short positions have started paying a fee to traders with long positions. This fact indicates that market participants are increasingly confident in a bearish outlook for the Bitcoin price in the short term.
Bitcoin Price Forecast
Taking into account miners' sales and the dominance of bears in the futures market, one should expect downward pressure on the Bitcoin price in the coming days. The price may decline below the $26,000 mark, which would pose a significant test for the current upward trend.
However, it's worth noting that the cryptocurrency market is known for its volatility, and events can unfold rapidly. Investors and traders should be prepared for unexpected changes and stay informed about market news and analysis.
Recent events in the Bitcoin market, related to miners' sales following the Fed's meeting, have triggered a shift in market sentiment and negative funding for short positions. This could lead to a decline in the Bitcoin price in the near future. However, as always in the cryptocurrency world, events can evolve quickly, so it's essential to remain vigilant and adaptable to market changes.
