Topic: Another 5000 Miner BTC Sent To Binance- another dip? - page 2. (Read 595 times)

Another one? Or it's the same bitfarms?
https://www.coindesk.com/business/2022/06/21/miner-bitfarms-sold-almost-half-its-bitcoin-to-reduce-debt/


If 5k is a drop in the ocean, then how many bitcoins have been sold on top of the usual trade volume to crash the price from 30k to 17k?
5 million? 
That volume made by bots trading 100 satoshis 300 times per minute is not something you can rely on, the only thing that could make things clear on the scale of the impact if we would know the amount of $ that is sent and withdrawn each day from those exchanges, knowing so what cushion we have that might offset a large sale.


Some miners have also purchased bitcoins, including the above-mentioned bitfarms or Mara who has also purchased 6000 coins through a subsidiary, or others who had received tons of money from the investors but since every single piece of gear was sold one year in advance they decided to invest some of the cash in BTC.
Everyone was focused on Salvador but mining companies in the US have bought 10 times more than them.

That's most likely following the next bitcoin halving in 2024? Can we at least anticipate 40k before the next bull run, even though I know it would be bullish? I don't believe we will see another 70k very soon if BTC doesn't go beyond 30k before the next halving

Inflation definitely affects miners as well and coupled with the downturn in economy some of them will be forced to plunge into their bitcoin reserves in order to survive and/or cover the losses.
The market doesn't appear to be controlled by a small group of people. Price action is just a reflection of market participants. The liquidity is quite shallow compared to other more mature markets so that's why we assist big, sharp dips.

The pressure of the miners could push the price lower, but the price will stabilize at one point as pressure lifts. These are just economic facts. Supply and demand. Do your dilligence and decide for yourself. Keep in mind that people have emotions. They can't control them. When they lose money, they panic. When they make a lot of money, they are enthusiastic, greedy and want to make more in fear of not missing out.

Honestly, these huge sell offs are always a thing whenever it's sent to exchanges. Not that new because even we're on a bull run, whenever a news like this comes off. It looks like things are always bearish when it's published. So, these miners, they sell whether it's on bearish or bullish and they're like us. And since it's all related to mining, I've read recently in a certain mining community that they're turning off their miners because it's not profitable for them as of the moment.

Many miners have no other option as to mine and instantly dump the coins, since they have to buy electricity and pay credits for their hardware etc.. The profit margin is a few percent that they then can keep in BTC if they want, after they paid for all their monthly expenses.

Miners can only sell what they mine, and according to the current reward, a total of about 27 000 BTC (900 per day) can be mined in 1 month. Even if everyone miraculously joined forces and sold everything they mined, they would only harm themselves (at least in the short term) because they would bring down the price even more. I wouldn't say that they are so stupid as to do it that way, and that they certainly use OTC, and maybe virgin mined BTC has a premium price, so they profit that way too.


I understand the disappointment, but on the one hand, we can't talk about adaptation, and on the other hand, I guess we should keep Bitcoin under the glass bell away from all the negative influences? Also, keep in mind that big crashes have already happened in the past, but that Bitcoin has always come out stronger. Bitcoin is an alternative, but not one that is resilient to everything that happens in the world.

As to Bitcoin, there seems to be a growing concern that soon it can go less than $10K so we should not be wondering if miners are selling their hoards of the coin at the prevailing rate. Of course, this is can cause more pressures on BTC to go down...and there is nothing we can do about it. In 2017-2018 the same thing happened but this time it can be bloodier...and we are now seeing many "pretending to be strong' crypto-base platforms getting killed one by one. We are expecting more bad news on crypto because as the global economy is tethering towards great bad changes, the crypto industry is acting like its mirror instead of offering a good alternative - a big failure in my opinion.

Binance has an OTC market, Therefore, do not think that someone will send 5,000 bitcoins to be liquidated in the order book, and Binance does not deal with such orders at the current price, but rather an average price of bitcoin is agreed upon.

• What I'm trying to say is that OTC deals are executed at an agreed price, regardless of the current price.
• Therefore, if there was an effect, it would have occurred in the previous days and not now.

5000BTC will cause less than 1% change which is not a big deal

Agreed on this but they might expecting something that will happened to cause a dump which miners do this kid of move as safety precautions to secure there profit. They are not hero of Bitcoin that willing to catch all the bullet when price dump and they will still hold. They are business and they have a lot of expenses to maintain there farm, They mine the Bitcoin on low price and difficulty so I’m sure they will not miss a chance to TP while price is still in 5 digits a piece.

I have the impression that it's you who's trying to spread "news" with potential to panic newbies.
As the others said, 5000BTC is not an amount that can make the markets go wild, especially if it's indeed from miners that try to cash in as good as they can.

Of course, there's no guarantee that the market won't go lower, but that's not because of only 5k.

I don't think we should reach much into it.
Around 5,000+ bitcoins gets deposited into exchanges on a daily basis(https://twitter.com/whale_alert)

And whenever a whale tries to dump, they do it systematically. They stretch it out unless they have a dire need for cash.
Hopefully a nothingburger

most well organised pools do not throw large sums of coins into centralsied exchanges to put onto the market order book to get fiat to then pay their electric..
instead most organised pools have private contracts with OTC traders away from the exchange/markets.

this is where a negociated deal is set that a potential BTC buyer gets into an mutual agreement contract with a pool that the buyer will pre-pay either a 3month(quarter) or full year of electric rates with the asic farms electric supplier. and be awarded XXX coins at the end of the quarter no matter what the price volatility is. where by at the end of the quarter they negociate the asic farms profits or left over funds to be paid to the asic farm depending on circumstance.

major asic farms with efficient mining do not play to the whims of price movements. they have electric contracts pre-paid for 3-12 months ahead of time. so there is no point "switching off".
instead they just mine no matter what. their price per coin is also pre-set. months before. so again no need for them to panic..

the only ones that do panic are the smaller hobby miners that have more expensive electric costs and pay daily-weekly-monthly.. like many residential homes do. where they do have to watch the price more short-termly and cut losses quick if the price wont pay the electric that day/week

If we just only based on this kind of scenario where some of the miners sell then provably we will see a dumped because people might get Fud on the actions made by them, but this really doesn't give much effect and I believe miners do this frequently so if there's something bearish season gonna happen I think this is made up by some manipulation attempts and not with the miners selling some of their stash.

stupid again they mine and have to pay a fee to mine then sell it for under $20k which is ridiculous, why don't they sell it when it's $60k, just watch people freaking out selling cheap their bitcoins to big whales

$29B =1,450,000btc in 24 hours
         =60416.66 an hour
       ~=10k per 10 minutes
       ~=5k per 5 minutes
so if other sellers are doing 5k volume in 5 minutes. and a new seller throws 5k in that same 5 minutes.. thats doubling the sell pressure for that 5 minute session

however coins move every second
meaning an exchange volume per order is not 5k.
an exchange order per second is atleast 300x less then 5k
where roughly 16btc is moved every second.

now if someone was to have 5000btc as one lump in one order.. that impact is temporarily for that 1 second 300x more then the norm average market order

of course over 24 hours its not impactful. but if pushed through in 5 minutes or 1 second then its noticeable..
whats then in question:
how much that 1 second or 5 minute sell session impacts, and how will other people react after the fact.. well thats speculation

..
with all that said. the topic creator did not link a bitcoin transaction to show the claim of the topic.
in many topics of "whale alerts" showing large movements of over 1000 coins. it ends up not actually being a whale making a deposit. but instead the exchange itself just shuffling around its hot/cold wallets of funds it already had.

so was this actually a miner moving 5000 coins. or just another hotwallet shuffle by the exchange..
..
other things to add..
although if its shown to be the case of fresh mined coins being sent to an exchange. thre have been cases where those coins do not turn into exchange balance to then hit the market.
instead some actually use an exchange as a gateway to send funds to thousands of users(individual miners of the pool) without bloating up the blockchain with thousands of utxos
they instead send exchange database balance to their pool users exchange account. splitting up the coin, as coin allotments to the many thousands of exchange accounts. without needing a bitcoin transaction with thousands of utxo's

then its up to the individuals to choose what they do with their balance.

Last but not least, miners will have more pressure to sell their Bitcoin that they received from mining recently. They sell it but they have yet capitulated. We must see a worse market and long period of unprofitable for miners to see capitulation.

When they can not cover their electricity mining cost, bank calls if they borrow to buy ASIC and some physical things to set up and mine Bitcoin, they will have to capitulate. Capitulation will appear before a new market. Market can not complete a bearish phase if most of people and miners are still healthy, feel positive and hopefully about the market.

Does 5000 BTC mean something in a market that had a volume of just under $29 billion in 24 hours - which would be about 1.4 million BTC? I would say it's a drop in the ocean that shouldn't change anything, although most need very little to panic...

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That story never stops, it’s part of an anti-Bitcoin agenda that runs in the background and uses the mainstream media as its main tool to create public opinion. Given that all major media outlets are owned by only a few large global corporations, it is not difficult to conclude who is most bothered by Bitcoin.

Similar things happened in 2018 if I'm not mistaken, during the bear cycle and everyone is selling including the miners to settle their bills perhaps.

And yeah, just a matter on how he/she is going to dump it, will it be in one go, or slowly so that it won't affect the market price is drastic way. I think the miners is smart enough not to do the former, or maybe OTC will be good.

We’re in a bear market so this is to be expected. The price is going to be bearish for a couple of years now. Miners can’t continue to operate at a loss for long so they have to sell at certain points. Don’t worry about it, we’ll be back in a new bull market 2 years from now.

I'm guessing nothing super major if the seller was smart enough to not dump it in one go. If anything, if sold on spot (through a sell offer, not dumped in one go), it would probably just give bitcoin a good amount of difficulty to go higher.

Or maybe they're going to do OTC.

We're going to hear "Bitcoin is dead" for years and years and years. Get used to it.