Are the Bitcoin Miners Trump Met Selling Because of the FED?

The Bitcoin market has been going through turbulent days recently, both politically and in terms of technical indicators. Former US President Donald Trump has made moves to gain the support of the cryptocurrency community, while significant developments are also taking place in the Bitcoin mining sector. Here are the details...

Trump met with Bitcoin miners

Trump met with executives of crypto mining companies like CleanSpark Inc. at his Mar-a-Lago estate. During the meeting, the contribution of Bitcoin mining to a stable energy grid was emphasized, and as reported by Kriptokoin.com, Trump once again demonstrated his support for the sector by declaring himself the “Crypto President”. On the other hand, the Biden administration expresses concerns about the environmental impact of Bitcoin mining. This situation leads the Democratic Party to closely examine the mining sector and closely monitor energy consumption and carbon emissions.

Since China banned cryptocurrency mining in 2021, the US has become the center of this industry. However, mining activities have also been criticized due to high energy consumption. In a post on the social media platform Truth Social, Trump combined Bitcoin mining with nationalist rhetoric, stating, 'VOTE FOR TRUMP! Biden's hatred for Bitcoin only helps China, Russia, and radical leftists. We want all remaining Bitcoins to be mined in the US! This will make us a LEADER in ENERGY!'

BTC price and miners await the FED

While these developments are taking place, the BTC market is also giving important signals from a technical perspective. The price of Bitcoin came under selling pressure ahead of the critical FOMC meeting where the US Federal Reserve will discuss interest rate decisions. On-chain data indicates that Bitcoin miners are aggressively selling their Bitcoin. Julio Moreno, the head of CryptoQuant research, emphasizes a significant capitulation tendency among BTC miners. It is reported that miners sold 1,200 Bitcoin on Monday, which is the highest daily sales volume since the end of March.

The fact that these transactions take place in over-the-counter (OTC) markets, not in exchanges, indicates that miners are conducting large and secretive sales that will not suddenly affect market prices. At the same time, the amount of Bitcoin on Bitcoin OTC desks has reached a peak in the last year, rising to 54,000 Bitcoins. The increase in the transfer of Bitcoin to OTC desks suggests that miners may be preparing to sell more Bitcoin due to concerns about potential price drops or the need for cash.

What are the analysts saying?

After the last halving, many mining companies and individual miners are expressing that they cannot operate profitably. This situation could also lead to a potential exit from the sector. Bitcoin analyst Willy Woo suggests that recent liquidations could trigger a downward momentum in Bitcoin prices. If the next wave of liquidation feeds this trend, Woo claims that Bitcoin could drop as low as $62,500 to clear the remaining speculative positions.

Woo emphasizes that the 'degen' (over-leveraged) futures positions need to be cleared before any significant upward movement begins. Analyst The Scalping Pro also points out that Bitcoin has once again bounced back from the resistance level. Bitcoin has been fluctuating between $60,500 and $71,500 since March and has been rejected from the resistance level for the fourth time during this period. The analyst states that the critical support level for Bitcoin to avoid further decline is around $65,000.

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