A recent report by analytics firm IntoTheBlock revealed that Bitcoin miners have sold more than 30,000 BTC (about $2 billion) since June.
This sales rate is the fastest sales rate observed in more than a year. According to analysts, the recent halving event is estimated to have triggered this sell-off due to the potential decline in profits.
QCP Capital expressed the pressure that Bitcoin miners are currently facing. Seeing breakeven prices in post-halving costs put miners under serious pressure. As a result, miner BTC holdings have fallen to the lowest level seen in the last 14 years, and total reserves have decreased by 50,000 since the beginning of the year.
Adding to the market's uneasiness is the emergence of a new large supply pool. While it is claimed that the German government has sold approximately 3,000 BTC in recent days, another 47,000 BTC is expected to be sold.
Despite current market conditions, market volatility points to a bullish outlook towards the end of the year, according to QCP. The QCP Capital trading desk observed large sales of call options for maturities under one month and aggressive purchases of call options from September to December. According to the company, this indicates that the market is pricing in a summer consolidation period, followed by a significant movement towards the US elections.
*This is not investment advice.
