Bitcoin Miner Sales Could Pressure BTC’s Price, Says JPMorgan
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Miners Can Create Pressure on BTC's Price
In a note from Friday, JPMorgan strategists led by Nikolaos Panigirtzoglou noted that publicly-listed miners which account for about 20% of the total have been increasingly selling their holdings throughout the past two months, reported Bloomberg. At the same time, privately-held miners have also done the same for liquidity amid the current bearish situation, the report adds.
The strategists also noted that more Bitcoin mining companies are going to do the same in the coming times. And that could create pressure on BTC's price.
“Offloading of Bitcoins by miners, in order to meet ongoing costs or to delever, could continue into Q3 if their profitability fails to improve. That offloading has likely already weighed on prices in May and June, though there is a risk that this pressure could continue,” the strategists wrote.
Miners Have Dumped Nearly $400B Worth BTC
Over the past ten days, Bitcoin miners have dumped a total amount of 18,251 BTC worth $391,984,027 at the time of writing, according to a report from IntoTheBlock.
Meanwhile, Bitcoin mining difficulty had witnessed a significant drop, falling 2.35% in the past two weeks. This is the second large negative adjustment since this year began and the fifth adjustment of mining difficulty for Bitcoin this year overall.