{"id":280752,"date":"2021-06-22T17:07:46","date_gmt":"2021-06-22T14:07:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/a-seismic-mining-shift-may-be-driving-bitcoin-price-below-30k-report\/"},"modified":"2021-06-22T17:07:46","modified_gmt":"2021-06-22T14:07:46","slug":"a-seismic-mining-shift-may-be-driving-bitcoin-price-below-30k-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/a-seismic-mining-shift-may-be-driving-bitcoin-price-below-30k-report\/","title":{"rendered":"# A \u2018seismic mining shift\u2019 may be driving Bitcoin price below $30K: Report"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28216657588\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28216657588\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/a-seismic-mining-shift-may-be-driving-bitcoin-price-below-30k-report\/#Miner_capitulation_FUD\" >Miner capitulation FUD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/a-seismic-mining-shift-may-be-driving-bitcoin-price-below-30k-report\/#Big_investors_absorbing_miners_OTC_distribution\" >Big investors absorbing miners&#8217; OTC distribution<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># A \u2018seismic mining shift\u2019 may be driving Bitcoin price below $30K: Report  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) plunged 7.38% to hit its five-month low of $29,313 on Tuesday as the market stared at the prospect of another sell-off, this time led by miners affected by a recent crackdown against cryptocurrency entities in China.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/508fb37d-c5a0-4753-9947-ec117a47ec5d.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin drops below $30K for the first time since January 2021. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<p>The People&#8217;s Bank of China on Monday said it had summoned multiple regional institutions, including the Agricultural Bank of China, China Construction Bank, and ICBC, as well as Jack Ma&#8217;s payment platform Alipay, to \u201cstrictly implement\u201d its recent ordinances on curbing Bitcoin and other cryptocurrency-related activities, including mining.<\/p>\n<p>Sichuan, a hydropower-rich region in South-West China, ordered the 26 largest crypto mining farms to stop operating, Chinese <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> report on Friday. The province was contributing 75% of the total global hash power to run the Bitcoin blockchain network.<\/p>\n<p>The regulatory warnings followed a decline in the Bitcoin market, which, in mid-April, traded near $65,000, spurred by backings from high-profile advocates, including Tesla CEO Elon Musk.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Miner_capitulation_FUD\"><\/span>Miner capitulation FUD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-25-2021\/\">report published by Glassnode<\/a> revealed a &#8220;seismic mining shift&#8221; taking place in China. The data analytics platform noted that many miners are in the process of either shutting down or migrating their hash power outside China to comply with the mining ban.<\/p>\n<p>&#8220;One of the largest migrations of Bitcoin hash-power in history <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be underway,&#8221; wrote Glassnode, adding that\u00a0the estimated mean hash-rate (7DMA) has declined from circa 155 EH\/s to around 125 EH\/s in just two weeks after the China FUD (a backronym for Fear, Uncertainty, and Doubt).\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/e94fd02c-fcb1-4b81-b4f9-036b8ad059b3.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin mean hash-rate plunged 16% in two weeks after China FUD. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Glassnode anticipated that the Chinese mining industry would likely liquidate a portion of their Bitcoin holdings when coming to grip with relocating their farms abroad or selling their hardware. Those sell-offs might reflect &#8220;miners hedging risk&#8221; and &#8220;obtaining capital to facilitate and fund logistics.&#8221; <\/p>\n<p>Meanwhile, for some miners, it may be a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> exit from the industry entirely, the report added.<\/p>\n<p>Recent on-chain trends have shown a spike in miners&#8217; BTC distribution and a decline in accumulation. <\/p>\n<p>For example, the Miner net position change metric, which tracks the transactional flow of Bitcoin mining pools, showed miners distributing BTC at a rate of 4K to 5K per month over the period in which the hash rate fell 16%.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/f5f1ecda-0547-4f8e-b342-ad77becbe0d5.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Miners sold more Bitcoin than they held in the last two weeks. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>&#8220;This has reversed the trend of net accumulation which was active since April.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Big_investors_absorbing_miners_OTC_distribution\"><\/span>Big investors absorbing miners&#8217; OTC distribution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Miner capitulation is not necessarily a bad thing as long as the market absorbs the selling pressure. During the first quarter of 2021, bids for BTC\/USD rose from as low as $28,700 to $61,788 even as miners sold their Bitcoin holdings en masse.<\/p>\n<p>Jonathan Ovadia, chief executive at OVEX \u2014 a South Africa-based cryptocurrency exchange, credited institutional investors behind the latest sell-off absorption as he drew evidence from\u00a0MicroStrategy&#8217;s ongoing Bitcoin accumulation spree. He said:<\/p>\n<blockquote><p>&#8220;The continuous accumulation of Bitcoin by institutional investors, particularly MicroStrategy, is based on a very deep conviction of the potential future upside beyond this current correction.&#8221;<\/p><\/blockquote>\n<p>Meanwhile, taking a look at over-the-counter (OTC) desks, which miners utilize to match their large size distributions with institutional buyers, also showed demand among large volume buyers. <\/p>\n<p>&#8220;During both the May Sell-off and over the last two weeks, between 3.0k and 3.5k BTC in net inflows have been observed,&#8221; Glassnode observed. &#8220;However in both instances, almost the full inflow size was absorbed by buyers over just a few weeks.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/a152e28d-691e-4c14-a81b-e87e7d23290c.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Miners&#8217;s supply of 3K BTC to OTC desks met buyers within two weeks. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>As a result, OTC&#8217;s Bitcoin balances were relatively flat since April.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/a-seismic-mining-shift-may-be-driving-bitcoin-price-below-30k-report\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# A \u2018seismic mining shift\u2019 may be driving Bitcoin price below $30K: Report &#8221; Bitcoin (BTC) plunged 7.38% to hit its five-month low of $29,313 on Tuesday as the market stared at the prospect of another sell-off, this time led by miners affected by a recent crackdown against cryptocurrency entities in China. Bitcoin drops below&#8230;<\/p>\n","protected":false},"author":1,"featured_media":280753,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvMDU2NjhjOGItOWUzNS00NmJmLWI1Y2YtMzYxNTEyNTE3NDUwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74982,74863,81262,74939,75679,75150,78261,73785],"class_list":["post-280752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-btc-markets","tag-cryptocurrencies","tag-cryptomarket","tag-market-analysis","tag-market-capitalization","tag-market-update","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/280752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=280752"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/280752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/280753"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=280752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=280752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=280752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}