• About Us
  • Privacy Policy
  • Contact Us
Subscribe
Lascena
Advertisement
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021LIVE
  • Videos
No Result
View All Result
Lascena
No Result
View All Result

Bitcoin On-Chain Data Reveals Chinese Mining Pool Behind Its Crash

January 22, 2021
in Bitcoin
Reading Time: 3min read
Bitcoin On-Chain Data Reveals Chinese Mining Pool Behind Its Crash




An otherwise decentralized cryptocurrency, Bitcoin, might have become a victim of a centrally orchestrated price dumping attempt.

According to data fetched by CryptoQuant, a South Korea-based blockchain analytics firm, Bitcoin miners at Chinese mining firm F2pool started the massive sell-off that crashed the BTC/USD exchange rate by almost 20 percent in just less than 24 hours.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin outflow from F2Pool to all exchanges. Source: CryptoQuant

Oversupplied Bitcoin

CryptoQuant CEO Ki-Young Ju listed a series of bearish alerts he received when Bitcoin started plunging on early Friday. As per the data he provided, the Miners’ Position Index went above 2.5, reflecting growth in Bitcoin units that miners moved from their wallets. Meanwhile, the CryptoQuant’s All Exchange Bitcoin Transaction Count Inflow surged, showing F2pool as a major BTC depositor.

“The dump might have started from BTC miners in F2Pool,” Mr. Ju added. ” 569 people deposited BTC in a single block (10 min). 78 miners deposited BTC in a single block (10 min).”

Miners typically sell their BTC rewards to cover their operational costs (including electricity bills, equipment handling, and maintenance). Many of them prefer to hold a portion of their Bitcoin holdings for speculations, thereby effectively limiting the cryptocurrency’s supply from entering the retail markers. That, in turn, acts as an indicator to determine Bitcoin’s short-term bias.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin was down about 32 percent from its record high near $42,000. Source: BTCUSD on TradingView.com

For instance, if miners supply less BTC to the retail amid higher demand, the cryptocurrency’s price goes upward. Similarly, if miners start selling more BTC in the free market, that often surpasses the demand, leading to lower bids for the cryptocurrency.

It was not clear why F2Pool decided to mass-dump their BTC holdings at this time of press. However, given its massive influence over the Bitcoin mining space, CryptoQuant deduced the mining pool’s act as the main catalyst that slumped its price from $35,498 to $28,732 in just 24 hours.

Absorbing Bearish Bias

The BTC/USD exchange rate’s plunge below $30,000 was brief. Traders and investors quickly utilized the opportunity to purchase Bitcoin at cheaper rates, further validating the cryptocurrency’s long-term bullish narrative that has already pushed its price higher by more than 1,000 percent since March.

For instance, New York-based cryptocurrency investment firm Grayscale Investments purchased more than $600 million worth of BTC this week, especially as the price was heading lower. That amounted to possibilities of incredible support levels between $30,000 and $35,000.





Source link

Facebook0
Twitter0
Linkedin0
Print0
E-mail0
Yahoo Mail0
GMail0
SMS0
Messenger0
Tags: BitcoinChineseCrashDataMiningOnchainPoolREVEALS
Next Post
Hut 8 Completes $11.8M Financing for New Bitcoin Mining Machines

Hut 8 Completes $11.8M Financing for New Bitcoin Mining Machines

Grayscale May Have Laid Groundwork for 5 More Potential Crypto Trusts

Grayscale May Have Laid Groundwork for 5 More Potential Crypto Trusts

Don't Miss

BITCOIN TO $50,000 – THE FEDERAL RESERVE GUARANTEES IT!!! Price Prediction – Crypto News 2020
Cryptocurrency Videos

BITCOIN TO $50,000 – THE FEDERAL RESERVE GUARANTEES IT!!! Price Prediction – Crypto News 2020

by Lascena Cryptocurrency News Education
February 26, 2021
0

Bitcoin will go to at least $50,000, the actions of the Federal Reserve basically guarantee it, the Bitwise price prediction....

Read more
Ripple XRP ”It’s All Over We Can’t Save It!” | Robert Kiyosaki

Ripple XRP ”It’s All Over We Can’t Save It!” | Robert Kiyosaki

February 26, 2021
Can Investing In Cryptocurrency Make You A Millionaire? Bitcoin & Eth Getting Ready To 🚀Crypto News

Can Investing In Cryptocurrency Make You A Millionaire? Bitcoin & Eth Getting Ready To 🚀Crypto News

February 26, 2021
Grin ASIC Miners Canceled?! Innosilicon SECRETLY MINING with G32 Grincoin miners?!

Grin ASIC Miners Canceled?! Innosilicon SECRETLY MINING with G32 Grincoin miners?!

February 26, 2021
Craig Wright demands that ‘Bitcoin developers’ return him $5 billion in BTC

Craig Wright demands that ‘Bitcoin developers’ return him $5 billion in BTC

February 26, 2021

Lascena Cryptocurrency News Education

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

© 2020 lascena.ca

  • About Us
  • Privacy Policy
  • Contact Us
No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
    • Altcoin
    • Litecoin
    • Ethereum
  • Blockchain
  • Regulation
  • Market
  • Prices 2021
  • Videos

© 2020 lascena.ca

  • bitcoinBitcoin(BTC)$45,283.00-10.51%
  • ethereumEthereum(ETH)$1,438.90-12.10%
  • tetherTether(USDT)$1.010.59%
  • Binance CoinBinance Coin(BNB)$217.57-12.66%
  • cardanoCardano(ADA)$1.01-4.36%
  • PolkadotPolkadot(DOT)$28.90-14.53%
  • rippleXRP(XRP)$0.425863-10.64%
  • litecoinLitecoin(LTC)$167.09-8.66%
  • chainlinkChainlink(LINK)$24.05-12.25%
  • bitcoin-cashBitcoin Cash(BCH)$474.35-11.52%