Old Miners Are Cashing out on Bitcoin as the Cryptocurrency Tests All-Time Highs

Some of the earliest Bitcoin miners are sending their old block rewards up for exchanges. This activity contributes to selling pressure as the cryptocurrency falls back from testing its all-time highs. Miners are offloading some Bitcoin (BTC) holdings and taking profit which is most likely the reason of the selling pressure on Bitcoin.

Bitcoin Tests All-Time Highs

Last month, Bitcoin’s price culminated in a new all-time high and a rather quick reversal this Tuesday. This rapid value ascent means that some early miners decided to sell their old block rewards. The end result was putting pressure on the BTC’s price.

CryptoQuant’s on-chain data revealed that traders moved $69 million worth of Bitcoin (1,000 BTC) to Coinbase. These users featured addresses that were over a decade old, which the research firm linked to miners.

This happened just before Bitcoin peaked at new heights of around $69,000 and then went down to $62,000 this Tuesday.

Bradly Park, an analyst at CryptoQuant, noted that a sell-off of 1,000 BTCs is very likely to cause a significant price drop. This comes after considering that the exchange order book shows 5-10 BTCs of liquidity for each value change of $100.

Park then said that this is especially the case when traders wait to enter a short against the cryptocurrency’s all-time high.

This activity reminded Park of the sharp increase in Bitcoin inflows that happened before the price drop of 40% back in March 2020. At that period, Covid-19 just began rapidly escalating in severity, causing all kinds of market fluctuations.

When the Bitcoin sell-off finally settled, the cryptocurrency managed to bottom out at $3,850.

Bitcoin Quickly Rebounds as the Crypto Market Slid 10%

As we mentioned, Bitcoin went down 7% this Tuesday after briefly reaching all-time highs. This event caused a wide sell-off on the market and generated over $1 billion in liquidations due to the volatility.

Bitcoin’s value went as low as $60,800, but in just a couple of hours, it quickly reached a price of $67,000. Some crypto observes noted that profit-taking at historical highs caused the selling pressure. Among them are also miners who offloaded some of their BTC holdings.

The data indicates that the inflows in spot Bitcoin ETFs stayed strong after BlackRock generated more than $760 million this Tuesday. In the meantime, some crypto market analysts noted that high-value targets for BTC are still in place amid the halving event.

Alex Adelman, CEO of the Bitcoin rewards app Lolli, gave his opinion on the whole situation. He said that we may see BTC’s ongoing surge continue if the demand for its ETFs continues to outstrip new production.

Adelman then gave his prediction following the Bitcoin halving event in April this year. He believes that the increased scarcity and the high demand from institutional investors and retail may raise BTC’s value even higher. According to him, Bitcoin’s price may go up to $150,000 in the next year, based on historical trends.

In the past couple of hours, Bitcoin’s strength started to reverse the Tuesday’s losses on some other major tokens. Among them are Cardano’s ADA, Solana’s SOL, Ether (ETH), and some meme coins.