Bitcoin price faces increased selling pressure.
In a tweet on Friday, crypto analyst Ali Martinez highlights that Bitcoin miners have sold about 4,586 BTC in just three days, according to data from CryptoQuant.
“Bitcoin miners have sold roughly 4,586 BTC in the last 72 hours, according to on-chain data from @cryptoquant_com!” Martinez wrote.
#Bitcoin miners have sold roughly 4,586 $BTC in the last 72 hours, according to on-chain data from @cryptoquant_com! pic.twitter.com/wB1CRxOJGA
— Ali Martinez (@ali_charts) September 2, 2022
Notably, Martinez’s tweet comes after Bitcoin Magazine reported on Monday that Bitcoin mining difficulty had increased by 9.26%, the second largest increase since January. The increase results from large public miners implementing long-term expansion plans.
However, this rapid increase in Bitcoin’s difficulty has also strained mining profitability, which has dropped 17% in the last 30 days. Consequently, miners are forced to sell their mining rewards to improve their liquidity.
In June, miners started selling en masse as Arcane Research revealed that profitability had plummeted 80% from the highs in November. As reported by The Crypto Basic, Bitfarms sold 3000 BTC during the period.
It bears mentioning that the increased selling pressure from miners could drive the price of Bitcoin even lower. Arcane research estimated that Bitcoin could drop as low as $10,350 before starting a bull cycle.
Bitcoin is trading at the $19,803.43 price point, a 1.4% dip in the last 24 hours.