Ordinal numbers, BRC 20 tokens and miners who unload the BTC: Why is Bitcoin Down?

Ordinal numbers, BRC 20 tokens and miners who unload the BTC: Why is Bitcoin Down?

Bitcoin recovered easily at the weekend, but is still at a relative season low of $ 27,360. What is behind the recent slump?

According to the crypto market analysis company Cryptoquant, the downward pressure on the prices of the prices could Go out.

miner "Load your bags"

in a post from barovirtual on Saturday that the miners have found their stocks since May 5th, whereby the net position of the miner at 9. May became negative. The key figure measures how strongly the reserves of the miners grow - or shrink every day - and helps to measure whether miners are hodging or selling their newly founded coins.

Bitcoin miner reserve (USD). Cryptoquant

The graphic shows that the miners accumulated their Bitcoin stocks strongly from mid-March to mid-April. After that, a wave of sales pressure ensured that the asset fell from over $ 27,300 in the asset within three days.

This sales pressure has remained about the same today and has found its peak in Bitcoin tumbled on Friday to a further low of 26.260 $

the BRC 20 fee spike

Before Bitcoin's slump last week, the miners had a big day with new income, which were achieved by the new hype around Ordinals and BRC-20 tokens, which Bitcoin gave an Ethereum-like benefit (NFTS and toKENization).

The phenomenon also advanced The fees of Bitcoin are similar to those of Ethereum and reached an average of $ 30 per transaction on May 8. These fees flowed directly into the pockets of the miners and represented a massive bonus in addition to the 6.25 BTC, which they normally earn per block.

The net position of the miners was briefly positive in the days of the BRC 20 hype, but quickly returned to the negative since the fees have dropped back to normal value. Fortunately for the bulls, Cryptoquant has reason to assume that the sale will soon end.

"At the moment, the net position values ​​of the miners are in the zone, in which Bitcoin bounced up in earlier times, and the local upward trend continued," explained Barovirtual. "In this regard, it can be assumed that the miners can significantly reduce their pressure, i.e. slow down the sale or cancel the sale if Bitcoin reaches the $ 24,000 goal."

in a (n interview last month said cryptoquant-analyst that the value of Bitcoin could return to its previous all-time high of $ 69,000 if the institutions agree at the end of 2023.

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