Today’s bitcoin price The decline may have surprised many, especially since it came after days of sustained bullish trends. Bitcoin (BTC) Jumped Above $21 on Jan 14th and remained roughly above that level until last night when it again slipped below $21k.
Apart from bitcoin, several other cryptocurrencies are in the red today, causing the global crypto market cap to decline by about 3.26% to $961.59B, according to data from CoinMarketCap. That said, it is still important to differentiate between the general market downturn and the main reason why bitcoin is plunging today.
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why is bitcoin falling today
The main reason for today’s drop in bitcoin price is the increase in outflow of bitcoin miners. said an analyst cryptoquant post On Wednesday that miners had transferred approximately 669 bitcoins to exchanges, a significant amount of bitcoins are being dumped into the circulating supply.
Mostly, miners take BTC out of their reserves for the purpose of selling and an increase in the outflow of miners puts selling pressure on bitcoin. Typically, miners use exchanges to quickly swap their bitcoins for altcoins or stablecoins or withdraw them as fiat.
So the law of demand and supply automatically kicked in resulting in a slight drop in prices following an increased amount of bitcoin in circulation supply.
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