The crypto markets are down today! Reason-the FTX-contagion spreads. The crypto community is well aware of the collapse of the popular exchange FTX, which caused significant market turbulence. The bullish push that began with the start of the 2023 trade was expected to keep the bearish trend at bay for a long time, as many tokens had recovered their losses from the FTX debacle.
However, the bears again regain their strength as the contagion spreads, compelling a well-known crypto lending platform, Genesis is proceeding to file for Chapter 11 bankruptcy.
Bitcoin prices slashed hard below $21,000 but currently holding the crucial levels at $20,800. Despite the prices showing some sign of stability, the bankruptcy filing may make the token extremely brittle. Adding icing to the cake, the miners may make the bear’s job much easy as they too appear to be preparing to sell BTC that they accumulated till now.
The miners had been constantly accumulating BTC since the beginning of 2021 and continued to hold until the market trembled due to the FTX fallout. This was when they began to liquidate which compressed the BTC price below $17,000. However, the miners stopped selling and started accumulating again at the beginning of the 2023 trade which propelled Bitcoin prices close to $21,500.
Woefully, this upswing appeared to be just a short-lived one as the bears are intensifying their actions. Besides, the miners are now started selling their reserves which may add to the mounting selling pressure ignited by the rounds of Genesis bankruptcy filing.
As per the fresh data provided by Crypto Quant, the BTC miners are flipping their positions oflet. A couple of huge outflows from their wallets of 4089 and 2500 BTC were recorded on 14th January and 17th January respectively. In a recent update, nearly 669 BTC were sent to the exchanges on 18th January 2023. Hence, this kind of miner behavior is increasing the selling pressure on the market.
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- Source: https://coinpedia.org/price-analysis/top-crypto-news-today-this-is-why-crypto-market-is-going-down/