The price of Bitcoin (BTC) fell back to less than $10,000 at the major exchanges on September 5th, marking two consecutive days of crucial level testing. Other major currencies, including Ether of Ethereum (ETH), fell nearly 10%.
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The daily chart of Bitcoin
Three factors that probably contributed to Bitcoin’s steep decline are the miners, a strong dollar and the whales that make a profit.
Did the whales benefit?
When the price of Bitcoin suddenly dropped 5% to $9,975 at Binance, BitMEX’s settlements were below $40 million. Normally, when a massive price movement occurs, it causes more than $100 million in futures contracts to be settled.
The futures data suggests that the selling pressure came from the spot market. While it is possible, there is a low probability that retail investors will start selling aggressively above $10,500.
Whales are more likely to profit from $10,500, which has historically served as a multi-year resistance level for Bitcoin.
But whales have been making profits since the price of Bitcoin reached $12,000. As Cointelegraph reported earlier, one whale sold for $12,000 after „HODLing“ BTC for more than two years.
Bitcoin is now larger than Bank of America and the New Zealand dollar by market capitalization
Some miners may sell
Throughout the week, the chain data provider, CryptoQuant, said that the mining pools had been making a profit. Ki Young-Ju, the company’s CEO, said
„The miners send a certain amount of Crypto Cash to the exchanges periodically, so they already have a lot of BTC in the exchange. Every time they decide to sell, they seem to move a relatively large amount of BTC to other exchanges, and a portion goes to the exchanges.
The gradual sale of Bitcoin by the miners since mid-August may have created significant selling pressure on Bitcoin. However, Poolin’s vice president, Alejandro De La Torre, emphasized that it’s a challenge to accurately track the miners‘ departures. He noted:
„I can assure you that CryptoQuant does NOT know which wallets are owned by Poolin. Maybe it’s a group of (large) miners they are tracking… still, there are many assumptions“.