Key Points
- Bitcoin’s recovery could be hindered by the ongoing miner crisis and major players offloading their holdings.
- Charles Edwards of Capriole Investments suggests that around $20 billion worth of BTC has been dumped in the market by key entities.
Bitcoin’s [BTC](https://coineagle.com/price/bitcoin/) price has been on a downward trend since its peak at $63.8K on 1st July, falling to $57K on 4th July, marking a 9% decline.
This is the fourth consecutive month of sideways movement since Q2, indicating a weakening market for the digital asset.
Reasons for the Plunge
Charles Edwards, founder of crypto hedge fund Capriole Investments, suggests that the dip in BTC’s price is partially due to significant players offloading their holdings.
Based on data from BTC miners, ETFs, and long-term holders (LTH), Edwards estimates that approximately 374K BTC, worth over $20 billion, has been dumped on the market.
When the LTH metric is adjusted from +2 years to 155 days, the net outflow is around $40 billion.
Adding Grayscale’s GBTC outflows into the mix, the total dump across these entities amounts to $18 billion worth of BTC.
Miner Crisis Impact
BTC miners, mentioned as a key entity in the analysis, continue to face a profitability crisis following the halving event.
Struggling miners may be forced to offload more of their BTC holdings to remain operational.
This crisis could further delay a bullish reversal for the largest digital asset, according to analyst Willy Woo.
The Bitcoin Hash Ribbons, moving averages that signal when hash rates drop, particularly during miners’ profitability crises, have yet to recover, further indicating a weakening market structure for BTC.
