Bitcoin Price Trends Amid Selling Pressure from Miners and Asian Holders

Bitcoin’s value continues to decrease as a result of miner sell-offs, the selling actions of Asian investors, and China’s renewed crackdown on mining. Meanwhile, institutional buying of Bitcoin quietly persists.

Key Takeaways

Bitcoin prices are falling due to selling pressure from miners and Asian holders.
Institutional investors are significantly purchasing Bitcoin despite the price decline.
China’s renewed restrictions on Bitcoin mining have contributed to network issues and a decrease in hash rate.
Long-term Bitcoin holders are selling at their highest rate in five years.
There is a regional imbalance in Bitcoin trading activity, with Asian exchanges seeing net selling while U.S. exchanges are experiencing net buying.

Bitcoin's price remains around $86,700 to $86,800, showing a slight decline. This price point follows the recent efforts to push into the mid-$90,000 range. Over the past year, trading during Asian hours has changed from significant selling to now stabilizing prices against Western selling, although a notable weakness has been observed post-halving in mid-2024.

Market analysts note that Bitcoin's price decline persists despite institutions accumulating billions in Bitcoin. This downward pressure largely results from forced liquidations linked to mining operations and long-term holders, especially in Asia.

Bitcoin slides as miners, Asian whales keep selling

Impact of Mining Regulations on Bitcoin Prices

China has recently reinstated restrictions on Bitcoin mining, causing an approximate 8% drop in the Bitcoin network's hash rate. China controls about 14% of global hash power, according to industry estimates. Moreover, long-term holders of Bitcoin are liquidating their assets at the fastest rate in five years, according to on-chain data. This activity offsets the buying pressure from institutional investors, stifling any potential price increases even amid substantial investments from these institutions.

Observers in the market have noted that the sell-offs from miners are largely driven by necessity, rather than market sentiment. Mining operations facing shutdowns have been compelled to liquidate their Bitcoin holdings to manage operational losses, further adding to the selling pressure.

On-chain data shows an uptick in liquidation activity among long-term holders, particularly early adopters known as “OG whales,” in response to stringent mining restrictions over the past two months.

Regional Trading Disparities

A pronounced difference has emerged in trading activities across regions. Asian exchanges such as Binance, Bybit, and OKX report steady net selling, while U.S.-based platforms like Coinbase continue to find net buyers, indicating the ongoing accumulation by institutional investors in the U.S. This regional disparity in trading has kept Bitcoin prices under downward pressure.

Market analysts believe that once the selling from miners and long-term holders eases, Bitcoin’s price could stabilize as the market absorbs the excess supply.