The cryptocurrency Bitcoin (BTC) lost around 0.56% at 7:40 PM (GMT) on Sunday 13 September. The price of the cryptocurrency recorded $10,317.52.
As per the circulating supply, it hit 18.48 million BTC. The max supply reached 21 million BTC.
Meanwhile, BTC’s market capitalisation recorded $190.75 billion.
On-chain analysts attributed the drop of the cryptocurrency to miners who have been selling larger amounts of BTC, according to CoinTelegraph.
According to buy bitcoin worldwide, the role of miners is to secure the network and to process every Bitcoin transaction. Miners achieve this by solving a computational problem that allows them to chain together blocks of transactions. Miners receive newly-created Bitcoins and transaction fees for this service.
The CEO of the analysis firm Ki Young-Ju told Cointelegraph that some Chinese miners already realise their mining profitability (return on investment), and they might not want new mining competitors joining the industry because of the bull market.
On another hand, Glassnode revealed that the metric that shows the inflow of capital from miners to exchanges just hit a five-month high. BTC’s prices exceeded $12,000 in mid-August. A correction movement aroused after this hike to hit near $10,000.
“Bitcoin $BTC Miners to Exchange Flow (1d MA) just reached a 5-month high of 50.351 BTC’s Previous 5-month high of 44.479 BTC was observed on 14 August 2020,” Glassnode showed.
More about Bitcoin
The creation of the digital currency occurred in January 2009 following the housing market crash. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto, Investopedia clarified.
Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms. It is operated by a decentralised authority, in contrast to currencies issued by the government.