The global economic condition is in a very dangerous position right now. All the credits go to the global pandemic for the outbreak of the deadly Coronavirus. Some prominent countries facing economic downfall are the United Kingdom, Spain, and France. They are imposing new limitations across their boundaries. Thus, it is resulting in making the future financial prospects of numerous local business owners even more miserable.

The Lowering of Bitcoin by 6.5%

As far as the cryptocurrency economy is going, Bitcoin (BTC) came down by 6.5% to the 10300 US benchmark on the 21st of September after having stayed put at approximately 11,000 USD for some weeks. But, here is something very interesting to notice and that is the flagship crypto dived in value at the same time as gold and the S&P 500.

Another Predictable Crash Might Take Place

From a technical point of view, a very quick look at the “Cboe Volatility Index” represents that the suggested volatility of the S&P 500 at the time of the above stated time window upheaved quite enormously going high above the 30 USD spot for the very first time in more than two months. This actually led a lot of commentators to postulate that another crash similar to the one in March could be popping out.

The Fading Interest in the Precious Metals

Coming to gold, this precious metal has also fallen down quite heavily, and on another side, the price of silver dropped enormously in the last nine years. This fading interest in gold has led speculators to have a strong belief about the fact that people are once again facing towards the United States Dollar as a financially protected ground. This is occurring especially for the dollar index, maintaining a comparatively sturdier position against some other leading currencies like the Japanese Yen, the Euro, and the Swiss Franc.

The Economic Status of Europe is at Stake

Also, it becomes very important to know that the entire continent of Europe is going through a potential economic calamity. Many European countries are facing a forthcoming threat of a huge recession because of the unpredictable market conditions that have occurred due to the fear of the COVID-19 pandemic.

Bitcoin (BTC) is now at a halt at a price point of approximately 10300 USD. This has led in the social media sentiment of the currency flumping to 24 months low. Nonetheless, not in accord with what one may expect, Bitcoin has a huge tendency to see a big outpouring whenever online sentiment around it is levitating in fear, uncertainty, and doubt (FUD) territory.

There is Nothing Special About the Recent Jump

To be very real, the plunge in the value of stocks, crypto, and gold was neither due to any tech abnormality nor a coincidence as it is quite normal to observe concomitant dips across multiple markets at times of high instability.

The recorded data shows that many cryptocurrency miners began to sell Bitcoins (BTC) at the end of July 2020, leading to elevated pressure in the cryptocurrency market.

The action of selling the crypto coins led to the fall of the dominant cryptocurrency from mid of August 2020, thus recording a steep 13 percent downslide. The Bitcoins have since struggled to reach the $12 K benchmark.

As per CryptoQuant CEO Ki Young Ju, miners’ continued selling might not be sufficient to stop the next Bull Run. Based on the On-Chain data analysis firms’ observation, the miners and the Whales hold a considerable amount of Bitcoins. Data shows that whales are not selling Bitcoins, and institutions are collecting BTC.

Willy Woo, an On-Chain analyst, said that there are two unmatched sell pressures in the market. The first one is the miners who dilute the supply of crypto and sell onto the market leading to hidden tax via monetary inflation. The second ones are the exchanges that tax the traders and sell onto the market.

Miners sell crypto coins mainly to cover expenses, which leads to a correction in the cryptocurrency market.

Take the example of the period between August 17, 2020, and September 5, 2020, when the Bitcoins’ price dropped from $12486 to $9813, resulting from Bitcoins’ sale by whales at $12000. The miners, too, followed the same path.

The recent crypto market slump has resulted from the selling pressure from the whales and the miners; however, Ki explained that it is not enough to stop an extended bull run.

If the miners keep on selling BTC, it could lead to a healthy correction as a small price movement could lead to liquidation from highly leveraged traders. So even a small sell by the miners could cause a substantial price swing.

Ki was quick to point out that the miners’ sell-off was not strong enough to stop the future bull run in the crypto market.

On these said lines, ByteTree pointed out that Bitcoin miners’ net inventory decreased by 125 BTC per week in the last 12 weeks. The report suggested that miners sold approximately $1.362 million Bitcoins per week over and above the Bitcoins they mined and sold.

As Ki had been emphasizing, the data, as mentioned above, shows that the miners have sold a lot of BTC, but not an abnormal selling. It was instead a typical market behavior.

Bull still seems a possibility.

Bitcoin is still levitating around the $10000 technical support level despite multiple bear attempts to bring the level below the $10 K mark.

The substantial flexibility of cryptocurrency, primarily Bitcoin, suggests a bullish trend amidst the intense selling pressure in the coming days.