Baro Virtual – an analyst from the blockchain analytics platform CryptoQuant – suggested that Bitcoin miners may be signaling another Bitcoin pullback.
- Data shows that Bitcoin miners have been reducing their Bitcoin positions since August 8th.
- As BaroVirtual pointed out, this has put their net balance back in the negative zone. In the short-term, he believes this is “not good.”
“You may notice that in previous times when miners’ balance was reduced, BTC tended to decline to free fall or range decline trading,” he said on Thursday. “The current situation requires closer attention to the miner flows.”
- Mining companies began struggling in May as Bitcoin’s price fell, translating to lower revenues for all firms. Compass Mining laid off 15% of its staff in June, while the public miner Core Scientific had to sell the vast majority of its coins.
- That same month, JP Morgan posited that the Bitcoin selloff could worsen if miners continued offloading their coins.
- “Offloading of Bitcoins by miners, in order to meet ongoing costs or to deliver, could continue into Q3 if their profitability fails to improve,” said their strategists.
As of Friday, Bitcoin’s price is back down to $20,631 following Jerome Powell’s comments at Jackson Hole. The Federal Reserve chairman said FOMC was prepared to continue tightening monetary conditions until inflation is quelled.