Bitcoin has experienced several selling trends since the crash in December 2021. These are usually triggered by the drop in prices. Since these sell-offs can be triggered by different factors, such as the U.S. dollar's strength against other currencies, it's believed that the recent market volatility has been the main reason for these sell-offs.
Over the past couple of months, the selloff has been brutal, and it has dragged down the year-on-year values. However, it's believed that most of the selling is happening during the day trading hours in the U.S.
Bitcoin dumps during U.S. open-market
Year-over-year values for Bitcoin have declined during the day trading hours in the U.S. While the European market is experiencing a positive year-over-year value, the U.S. is currently at -32.55%. This suggests that the recent selloff has been mainly caused by U.S. traders. Compared to Asian trading hours, the U.S. is trading at a lower price.
The high correlation between the stock market and Bitcoin over the past couple of months has been one of the main factors that have caused the recent selloff. It's also good to note that other traders in different regions are also using the stock market to monitor the risk appetite of Bitcoin.
It's also been clear that many sales have occurred after the U.S. markets have opened for business. This happens because the price of Bitcoin tends to recover in the early mornings while Europe and Asia are open. However, once the markets in the U.S. open for the day, dumping is inevitable.
The current weak point for Bitcoin is being placed at a time when U.S. traders are actively participating in the markets. During these trading hours, it's possible to take advantage of the low prices by making short-term trades.
Selloff from miners
The broader cryptocurrency market has also been experiencing a downward price swing. Bitcoin miners have already started to dump some of their assets, while the price of virtual assets has also been dropping. Due to the continuous decline in the prices of virtual assets, the significant cryptocurrency token has also been in a downtrend. Hence, miners sell their assets to reduce the rising costs associated with their operations.
According to Bitcoin network reports, there has been a significant increase in miners transferring their Bitcoin assets to exchanges. The value of these assets has increased from January, and it reached a high of almost 200,000 BTC in May. With the average price of Bitcoin at $32K in May, the total value of these assets is around $6.3 billion.
Due to the significant decline in the price of Bitcoin, various types of sellers have emerged in the market. Some of these are small-scale miners who have been experiencing difficult liquidation situations.
Due to the current conditions in the market, it has become more difficult for large-scale miners to maintain their cash flow. This is why they sell their Bitcoin holdings and focus on exploring new business opportunities.
Riot Blockchain is one of the many companies selling their Bitcoin assets. The public trading miners used to stockpile Bitcoin to appreciate their token. They were also indirectly involved in allocating virtual assets through the stock market.