Bitcoin Dips Below 22K, Raising Concerns about Long-Term Trend

Kelly Cromley

2 years ago

As per statistics given by Ali Martinez from Cryptoquant, Bitcoin miners seem to have gained from the most recent price increase over $25,000 for the cryptocurrency. During the last two weeks, miners liquidated 5,925 Bitcoin for an aggregate value of about $142 million, according to the given graph.

This suggests that with the recent price rise, aggregate miners grasped the opportunity to improve their liquidity, potentially strengthen their balance sheets, and reduce risk. The level of stress among miners looks to be rising again after a brief decline. After reaching a high in June, this significantly decreased when Bitcoin prices plummeted below $20,000

Long-term holders, especially those who acquired Bitcoin at the market peak in 2021-2022, contributed to the profit taking on the crypto token today. As per Glassnode, there has been a net exodus of -300,000 BTC from long-term Bitcoin holders (LTHs) and crypto exchanges in favor of short-term holders since the breakdown of LUNA in May. (STHs). Earlier, the on-chain analytics company Santiment signaled that Bitcoin’s profit margins were increasing when its price plummeted below $23,000.

#Bitcoin miners appear to have taken advantage of the recent upswing to book profits. Data shows that miners sold 5,925 $BTC in the last two weeks, worth roughly $142 million. pic.twitter.com/slcO7SstOZ

— Ali Martinez (@ali_charts) August 19, 2022

As markets throughout the globe fell owing to heightened monetary policy uncertainty, cryptocurrencies faced a dramatic sell-off. Bitcoin’s price plunged as much as 9 percent, reaching its lowest position since late July. While writing this article , the leading cryptocurrency was trading 8.70% down at $21,450. As per statistics from Coinglass, cryptocurrency holdings worth $552.79 million were liquidated during the last 24 hours, with Bitcoin representing $203 million.

📊 #Bitcoin is staying relatively flat at $23.4k, but its profit vs. loss transaction ratio is creeping up to 'yellow flag' levels. Meanwhile, #Ethereum is finally outputting a much safer ratio this week after some very heavy profit taking in early August. https://t.co/CB79m9dkbE pic.twitter.com/RXfXTdkfuu

— Santiment (@santimentfeed) August 18, 2022

Bitcoin is trading lower than realized price of $21,773, which is the average value of the BTC token supply as of the most latest on-chain transaction, at its current price of $21,450. With BTC prices trading lower than the realized price, the near-term future is uncertain. The cryptocurrency fear and greed index has reverted to the “fear” category, signaling market anxiety.

#Bitcoin testing Realized Price. pic.twitter.com/wUqwORGHla

— Root 🥕 (@therationalroot) August 19, 2022