Are the Bitcoin Miners Meeting with Trump Selling in Expectation of the FED?

The Bitcoin market has been going through turbulent times lately, both politically and in terms of technical indicators. While former US President Donald Trump is making moves to gain support from the cryptocurrency community, important developments are also taking place in the Bitcoin mining field. Here are the details…

Trump met with Bitcoin miners

Trump hosts CleanSpark Inc. at his Mar-a-Lago mansion. He met with executives of crypto mining companies such as. While the contribution of Bitcoin mining to a stable power grid was emphasized in this meeting, cryptokoin.com As we reported, Trump once again demonstrated his support for this segment by declaring himself the “Cryptocurrency President”. On the other hand, the Biden administration expresses concern about the environmental effects of Bitcoin mining. This situation causes the Democratic Party to examine the mining sector more closely and closely monitor power consumption and carbon emissions.

Since China imposed a ban on cryptocurrency mining in 2021, the United States has become the center of this segment. However, mining activities are also the target of criticism due to high power consumption. Trump, in his post on the social media platform Truth Social, said: “VOTE FOR TRUMP! Biden’s hatred of Bitcoin only helps China, Russia, and radical leftists. We want all remaining Bitcoins produced in the USA! This will make us PRESIDENTS IN POWER!” He blended Bitcoin mining with a nationalist pronunciation by using the expressions.

BTC price and miners await the FED

While these developments are taking place, the BTC market is also giving valuable signals from a technical perspective. Bitcoin’s price remained under selling pressure ahead of the critical FOMC meeting where the US Federal Reserve (FED) will discuss its interest rate decision. On-chain data shows that Bitcoin miners are aggressively selling their Bitcoin. CryptoQuant research head Julio Moreno emphasizes that there is a significant capitulation tendency among BTC miners. It is stated that miners sold 1,200 Bitcoins on Monday, which was the highest daily sales volume since the end of March.

The fact that these processes are carried out in over-the-counter (OTC) markets, not on exchanges, shows that miners are making large and hidden sales that will not suddenly affect market prices. At the same time, the amount of Bitcoin on Bitcoin OTC desks has peaked in the last year, rising to 54,000 Bitcoins. The increase in Bitcoin transfers to OTC desks suggests that miners may be preparing to sell more Bitcoin due to concern about potential price drops or a need for cash.

What do analysts say?

After the last halving, many mining companies and individual miners state that they cannot operate profitably. This could also lead to a potential exit from the department. Bitcoin analyst Willy Woo states that recent liquidations may trigger a downward momentum in Bitcoin prices. Woo suggests that if the next liquidation wave fuels this trend, Bitcoin could fall as low as $62,500 to clear out the remaining speculation.

Woo emphasizes that “degen” (overleveraged) futures situations must be cleared before any valuable upper movement begins. Analyst The Scalping Pro points out that Bitcoin’s price has returned from the resistance level once again. Bitcoin has been fluctuating between $60,500 and $71,500 since March and was 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.