After a boring week of decline, Bitfinex analysts have made an updated analysis of the reasons for the decline in Bitcoin.
Speaking to The Block, Bitfinex analysts said that market liquidity decreased due to fewer institutional investors buying during the summer holidays.
According to analysts, decreased activity on the part of institutional investors has further increased Bitcoin (BTC) selling pressure.
At this point, Bitfinex analysts cited the decrease in corporate purchases during the holiday period as the reason for the price decline in Bitcoin, and also stated that long-term investors were also selling profits in Bitcoin, and when combined with other negative factors, the sales pressure increased.
“The fact that fund managers were on summer vacation increased the selling pressure and this reduced market liquidity.
Additionally, the data also includes long-term Bitcoin investors (3-4 years), the German government, and Mt. It shows that it is selling due to pressure from Gox sales. “Combined, the BTC price dropped even more.”
Bitcoin Miners Switched from Selling to HODL!
Apart from Bitfinex analysts, Bitget chief analyst Ryan Lee also made important statements.
Lee, who attributes Bitcoin's recent low performance to factors such as Germany, the USA, and Mt.Gox sales, said that miner sales pressure has decreased.
Stating that miners now tend to keep their Bitcoins instead of selling them, Lee said, “At the current price of Bitcoin, some mining rigs are not profitable. This may change the trading behavior of BTC miners. That is why I think miners are now more inclined to keep their Bitcoins rather than sell them. Conclusion “This reduces potential selling pressure from miners.” said.
*This is not investment advice.
