It is hard to escape the fact that Bitcoin has fallen recently. A few months ago, investors were talking about Bitcoin reaching $100,000, but now the price is well below $30,000 and many people are worried.
In these times, there are always discussions about what might be the reason for the drop. Does it have to do with circumstances in the world outside of Bitcoin? Is confidence in blockchain technology gone? Or are the financial markets just looking bad at the moment in general? If we look at mining data, we could concluede a possible answer.
The decline of Bitcoin
Indeed, it appears that several large mining companies have begun selling their Bitcoin, where they first left it on their balance sheets. Riot Blockchain is an example of one such large mining company. In April, Riot Blockchain sold as much as 250 Bitcoin, which at the time amounted to about $10 million. Another example is Cathedra Bitcoin, a similar mining company that sold 235 Bitcoin in the same month.
The fact that the largest mining parties in the world are probably indicating that many private miners are also dumping their Bitcoin heavily. All of this together, of course, means that there is quite a lot of selling pressure on Bitcoin, which in turn causes the price to fall.
So this could certainly be seen as one of the reasons for Bitcoin’s decline, but on the other hand, you could also argue that this is precisely a result of something else, for example the current financial state of the world.
It all remains speculation. Do you believe in a good outcome for Bitcoin? Then you can choose to invest in Bitcoin. Visit our exchange page and buy your first crypto today…