After the recent halving event halved Bitcoin block rewards, miners have significantly increased their sales of the cryptocurrency to offset the decrease in mining revenue and added pressure on Bitcoin prices. Data from CryptoQuant shows a notable rise in Bitcoin deposits on spot exchanges, creating a supply-demand imbalance in the market.

Impact of Increased Miner Selling Activity

With the block reward now set at 6.25 Bitcoins, miners have rushed to sell their holdings on various trading platforms, impacting market dynamics. The increase in supply and decreasing demand raise concerns about further declines in Bitcoin value. Julio Moreno of CryptoQuant notes an accumulation of Bitcoin on over-the-counter desks as demand softens among traditional and large-scale investors.

Decrease in Demand from Key Bitcoin Investors

There has been a noticeable slowdown in Bitcoin purchases from long-term investors and large holders, with their activity decreasing by half. This shows a reduced appetite for Bitcoin investments, mirrored by the outflows seen in Bitcoin-focused exchange-traded funds in the U.S.

Key Market Insights

• Surge in miner sales may cause more short-term price volatility.
• Decreased investor demand could lead to a deeper market correction unless reversed.
• Bitcoin price recovery depends on renewed investor interest and a balanced supply-demand ratio.

Bitcoin's price has dropped under $60,000, the lowest in two months, with expectations of reaching $55,000 to $57,000 soon. However, positive U.S. job data briefly boosted Bitcoin's price to around $63,830. Sustained recovery depends on the cryptocurrency maintaining prices above crucial thresholds in the upcoming weeks.