After failing to cross above $10,000 level, selling pressure on Bitcoin (BTC) increased once again, leading to a decline below $9,000.
In fact, the numero uno cryptocurrency, in terms of market capitalization, declined to $8,835 today morning before recovering slightly to trade at $8,915 at the time of writing this article (reflecting a gain of 1.7% in the past 24 hours).
Crypto enthusiasts are afraid that we may see another steep decline in the BTC price.
The decline below $9,000 was accompanies a sharp rise in inflow of BTC into various cryptocurrency exchanges. Bitcoin on-data signaled that major players were offloading their holdings during the weekend.
The data also indicates that a combination of selling by exchanges, retail investors and miners could have triggered the downtrend in the price of Bitcoin in the past three days.
As cryptocurrency investor Willy Woo earlier detailed, the main job of an exchange is to seamlessly match orders placed by buyers and sellers.
As an illustration, if a buyer places a bid to purchase Bitcoin at $9,000, a sell order needs to be there for the trade to get executed.
“When we say traders are ‘buying’ or ‘selling’ this is a myth. Every trade is matched, every trade has a buyer and a seller. (When we say the market is buying or selling, we actually mean smart money is buying or selling.)”
Post this 2020 halvening miners will cease to be the biggest sellers of Bitcoin. It’ll be the dawn of the crypto exchange as the leading seller.
The biggest sell pressure on Bitcoin will soon be from exchanges selling their BTC fees collected into fiat.
— Willy Woo (@woonomic) May 9, 2020
When miners liquidate the BTC generated as reward for validation of block and exchanges convert their BTC received as fees,