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CryptoQuant: Miner capitulation could send BTC below $20,000

CryptoQuant, a research firm, has warned that a massive sale of BTC by miners in a falling market could trigger a further decline in the price of bitcoin.

According to a CryptoQuant report, Bitcoin miners may be close to capitulation after selling the largest amount of assets in the past few months. This comes after a year of BTC miners accumulating, following a previous coin sell-off in early 2021. However, there is one significant difference between the two sales. In January 2021, miners were profiting as bitcoin soared to a new all-time high of $30,000. This is now reversed as the asset is down about 70% from its November 2021 peak.

The latest correction, worsened in June, “forced” miners to sell their BTC at current market prices in order to “minimize potential losses and reduce overall risk.” Based on this data, CryptoQuant analysts concluded that the miners are now in the distribution stage. They warned that increasing selling pressure caused by the miners capitulating “could drive the price down further in the short term, and bitcoin could fall well below the $20,000 mark in the near future.”

CoinShares expert Matthew Kimmell also believes that miners can provoke a fall in the crypto market. At the same time, the factor of their influence on the industry, in his opinion, is associated primarily with the saturation of the market with a large number of mining equipment. He stated that the sale of mining equipment to a subsidiary of Celsius could lead to a drop in miner prices and increase negative pressure on the market.

Source: Bits

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