Panic, Uncertainty Grips Crypto Market as BTC Plunges Towards $23k; Here are Two Likely Reasons

March 3, 2023

MCP News Free

Panic, Uncertainty Grips Crypto Market as BTC Plunges Towards $23k; Here are Two Likely Reasons

As Bitcoin’s price is plummeting towards $23k, two key factors have been revealed by a blockchain analytics CryptoQuant that are necessary for investors and traders to keep in mind.

According to the analysts for CryptoQuant, it appears that some large players, including the Bitcoin Miners are selling off their holdings.

Miners Appears to be Selling Off

Just like what the largest Bitcoin miners did back in 2021 when there was a crypto bull run when miners attempted to benefit from the rise in the price of Bitcoin, instead of them liquidating their holdings. Also, giant miners like Argo Blockchain and Core Scientific in June 2022 were under pressure to add to their holdings due to the drop in the prices of cryptos, leading to selling pressure.

Source; CryptoQuant

According to a Tuesday analysis by JAYBOT, miners are selling their Bitcoin back to cryptocurrency exchanges in high volumes, possibly for preparation against further sales.

“Therefore, it can be seen that short-term selling pressure has increased,” he said, while clarifying that he still sees no effect on “long-term price action.”

Whale Activity?

Analyst abramchart said Whale action on BTC spot exchanges is on the rise, there is a rise in the Bitcoin Exchange Ratio to 0.78 as of Wednesday, March 1, unlike last month which was 0.5, BTC Exchange Ratio is a metric for comparing the top 10 Bitcoin transactions flowing into exchanges to the total transactions flowing into exchanges.

Source;CryptoQuant

“The BTC Whale Rato metric is high for the next day in SPOT exchanges and this rise is often due to large inflows,” explained the analyst. “This behavior can lead to selling pressure.”

Furthering that as of Monday, the total number of BTC being sent into the spot market was around 12,310 Bitcoin, that’s over $286 million at the current BTC price. Fast forward to Wednesday, BTC sent to spot exchanges was around 10, 500.

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