The price of Bitcoin continues to decline as miner liquidations, large-scale selling by Asian investors, and China’s renewed mining restrictions overshadow ongoing institutional BTC acquisitions.
Summary
- China’s reintroduced mining restrictions have caused a decrease in Bitcoin’s hash rate by approximately 8%, pressuring miners to liquidate BTC and resulting in additional sell-side flow.
- Long-term “OG” holders from Asia are accelerating their sales on exchanges like Binance, Bybit, and OKX, counteracting the institutional accumulation happening on Coinbase.
- U.S. institutions continue to purchase BTC, but selling pressures from Asia and miners experiencing distress limit potential price increases until excess supply is fully digested.
Despite ongoing institutional purchases, Bitcoin prices are experiencing a downturn due to selling pressure from miners and Asian holders, as indicated by on-chain data and exchange activities.
Bitcoin (BTC) is trading around $86.7โ86.8k, slightly lower for the day, with prices stabilizing after the recent move toward the mid-$90k range. Over the past year, Asian trading hours have shifted from being net sellers earlier in the cycle to increasingly acting as a stabilizing force that absorbs Western selling, although signs of post-halving weakness are evident for mid-2024.
The cryptocurrencyโs price drop has persisted despite institutional investors acquiring billions in Bitcoin, as market analysts note. This downward trend is mainly due to forced liquidations from mining operations and long-term holders, particularly in Asia.
Bitcoin Asian trading hours
China has reinstated restrictions on Bitcoin mining, leading to an approximately 8% decrease in the network’s hash rate, as per network data. Industry estimates indicate that China retains control of about 14% of global hash power.
Long-term Bitcoin holders are selling at the fastest rate seen in five years, according to on-chain metrics. This selling activity has counterbalanced the purchasing pressure from institutions, preventing price increases even in light of substantial institutional investment.
Mining operations facing shutdowns have been compelled to liquidate Bitcoin assets to mitigate operational losses, which adds to the downward pressure on prices. Market observers note that this selling appears to be driven by necessity rather than sentiment.
On-chain data reveals that long-term holders, especially early adopters known as โOG whales,โ have ramped up their liquidation activities in response to stricter mining regulations over the past two months.
Regional trading differences are evident, with Asian exchanges like Binance, Bybit, and OKX exhibiting consistent net selling, while U.S.-based exchanges such as Coinbase continue to show net buying, reflecting ongoing institutional accumulation in the United States.
This regional imbalance between Asian selling and U.S. buying has sustained downward pressure on Bitcoin prices, suggest market analysts. They propose that price stability may return once selling from miners and long-term holders diminishes and the market can absorb the excess supply.
