Youwei Yang, chief economist of BIT Mining, one of the giants of the cryptocurrency mining industry, explained 2 reasons why the Bitcoin (BTC) price could not rise.
bitcoin price 30,000 dollar band While struggling to overcome it, eyes turned to the miners again. in price movements vicious circle pointing BIT Mining chief economist Youwei Yang made remarkable statements.
yang, Miner sales in the last period And derivative contracts by the end Set ahead of Bitcoin rise while emphasizing that profit sales He said it was predictable.
In a statement on the subject, Youwei Yang detailed the selling pressure caused by the miners with the following statements:
Some miners are selling their Bitcoins as the mining profit margin has increased recently. Natural market corrections and derivatives contracts ending around $29,000 towards the end of the month may also have contributed to the decline.
On-chain data also supported that miners are creating selling pressure. CryptoQuant Data provided by Bitcoin miner reserves approx. 5,000 BTC decreased and revealed that these assets were transferred to exchanges.
Cryptocurrency exchange in a similar report that overlaps with the data from Bitfinex came. shared by the exchange in the global mining report, It was stated that miners sent large amounts of Bitcoin to exchanges:
We believe this activity points to potential risk aversion or hedging strategies adopted by miners, and we would like to specifically point out that Bitcoin mining stocks have been on the rise recently as institutional interest in Bitcoin has increased.
dollar index and US Federal Reserve (FED) Referring to the interest policies, Yang said, From May 2024 He said that there might be a decrease in interest rates later. However, some segments DXY In periods of opposite movements with safe haven bitcoin He stressed that my situation does not always work this way, though:
Given recent inflation, my argument is that the Fed may not cut rates until May 2024. This is when a full-fledged bull cycle is expected to begin, encouraging long-term players to hold and hoard Bitcoin from now until then. On the other hand, although some see Bitcoin as a safe haven during periods of opposite movements with DXY, this is not always the case.