CryptoQuant: Miner capitulation could send BTC below $20,000

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Research firm CryptoQuant has warned that mass selling of BTC by miners in a falling market could trigger a further decline in the price of Bitcoin.

According to a report by CryptoQuant, Bitcoin minersmay be close to capitulation after selling the largest chunk of its assets in recent months. This comes after miners accumulated BTC for a year following the previous coin sell-off in early 2021. However, there is one major difference between these two sales. In January 2021, miners were profiting as Bitcoin soared to a new all-time high of $30,000. That has now changed as the asset has fallen about 70% from its peak in November 2021.

The latest correction, which worsened in June,“forced” miners to sell their BTC at current market prices to “minimize potential losses and reduce overall risk.” Based on this data, CryptoQuant analysts concluded that miners are now at the distribution stage. They warned that growing selling pressure caused by miner capitulation “could drive the price down further in the short term and Bitcoin could fall well below the $20,000 mark in the near future.”

CoinShares expert Matthew KimmellKimmell) also believes that miners can provoke a fall in the crypto market. At the same time, the factor of their influence on the industry, in his opinion, is primarily associated with the saturation of the market with a large number of mining equipment. He said that the sale of mining equipment to a subsidiary of Celsius could lead to a drop in prices for miners and increase negative pressure on the market.