Biggest Bitcoin Mining Pool May Be Behind BTC Price Drop, But Buyers Intervened

Bitcoin (BTC) fell to lows of $ 28,950 on January 22 thanks to the fact that the miners probably sold large amounts of their holdings, but large buyers made sure the drop was minimal.

According to data from the chain monitoring resource CryptoQuant, In recent days there were large outflows from the mining pools, which in turn corresponded to a BTC / USD drop of 20% in a week.

F2Pool’s daily outflows reach 10,000 BTC

As of January 15, the F2Pool outflows, currently the mayor mining pool, in particular, began to increase. By January 17, daily outflows had reached 10,000 BTC ($ 313 million), which held for three days in a row before returning to normal levels.

F2Pool seems to be responsible for the vast majority of exits, which does not necessarily mean that the miners have sold BTC on the open market, but simply that they have moved the mined coins from their original wallet.

Daily chart of BTC outflow from F2Pool. Source: CryptoQuant

Regardless of the pool reasons, The figures make a welcome counterargument to explain the sudden drop in the price of Bitcoin this week. Previously, theories that included the controversy en torno a la stablecoin Tether (USDT), as well as the dollar recovery, were the root causes of downward volatility.

Meanwhile, the balance in Bitcoin exchanges has remained constant throughout the month of January, in contrast to the general downward trend that has been maintained since the summer of 2019, according to data.

Bitcoin reserves chart of exchanges. Source: CryptoQuant

Sales come amid large Grayscale purchases

In case the F2Pool coins have formed a large glut of new BTC supply for sale on the market, a particular buyer likely grabbed them pretty quickly.

As reported Cointelegraph, the asset management giant Grayscale has added conspicuous amounts to its assets under management this week, which could help BTC / USD avoid a deeper slide.

Grayscale’s BTC holding company. Source: Bybt.com

He 2020 fourth quarter report recently published by the company, in which it says that institutions provided 93% of their inputs, compounds the idea that you are the main buyer of any leftover BTC offerings.

The CEO Michael Sonnenshein cree which in 2021 will see increased interest from financial advisers in the Bitcoin space, along with a drop in associated investment risk.

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