In the space of a few hours, the price of Bitcoin (BTC) has recorded impressive levels, returning to last week’s prices, and many people have wondered: why is Bitcoin falling?
As a result, some have noticed that the price of BTC might be falling due to the miners.
Significant outflows from the unknown miner before the dip. They're CAPITULATING.https://t.co/WVdBy1t17E pic.twitter.com/1LQeLYpY6X
— Ki Young Ju (@ki_young_ju) June 2, 2020
The graph, shared by the CEO of CryptoQuant, Ki Young Ju, shows the trend of the price of bitcoin in correlation with the movement of a mining pool: precisely when the price had exceeded 10 thousand dollars the mining pool sold more than 2000 BTC, thereby selling enough to destabilize the market.
This sale also occurred on May 20th, 2020 with over 5000 BTC.
Capitulated on May 20 as well pic.twitter.com/tgc10f3zEO
— Ki Young Ju (@ki_young_ju) June 2, 2020
We are talking about a really big mining pool, the fifth one in terms of power.
This illustrates just how true it is that mining pools and miners can really move the market at will, a concept discussed several times by the crypto community, especially because of the fear that a single mining pool could have too much hashrate and therefore control the blockchain.
Is BitMEX the reason for Bitcoin’s drop?
Others, on the other hand, think that the price of Bitcoin is now falling due to BitMEX and liquidations of over $120 million, as can be seen from the chart reported by Skew.com.
The exchange would have liquidated too many BTC all at once, leading to a market dump.
It is not the first time that BitMEX records such transactions and it certainly will not be the last, especially because it has recently launched other products, including swaps and futures, which are appropriate for these fluctuations.
Worth mentioning is also the problem detected by Coinbase: the exchange was unable to manage the significant increase in buying demand for BTC and sent the platform offline, blocking users and redirecting them to other platforms which remained active.
The Bitcoin Bart Chart
In any case, it is interesting to note how the trend of the Bitcoin (BTC) price has followed the so-called “Bart Chart”, i.e. it takes the form of Bart Simpson’s head, starting from the left and continuing up and down for a short period to then fall sharply.
