Bitcoin is currently under pressure as miners unload 1,200 BTC, potentially leading to a price drop to $62,500, according to analyst Willy Woo. Miners are facing bearish pressure as they sell off their coins to sustain their operations, with some experts warning of a potential bearish trend if supply continues to exceed demand.
Recent data shows that miners sold a significant amount of BTC on Monday, indicating a possible bearish sentiment among miners. These transactions are occurring over-the-counter, suggesting that miners are trying to limit the immediate impact on Bitcoin prices. The increase in OTC desk balances for miners further indicates the pressure they are under.
Analysts attribute this behavior to the recent Bitcoin halving, which occurs every four years and halves the reward for miners. This can lead to miners struggling to stay afloat financially, prompting them to sell off their coins. However, historical data shows that Bitcoin prices tend to rally after such events, compensating for the reduced supply.
Despite these challenges, Bitcoin is currently trading at $69,764 after a 4% increase in the last 24 hours. This has helped the digital asset recover from its weekly losses. Additionally, investor interest in Bitcoin remains high, with significant inflows into Bitcoin ETFs in the US.
Overall, while miners selling their coins may put some downward pressure on prices, the strong demand for Bitcoin suggests that any negative impact may be limited.