Bitcoin Price Holds at $23K, Miners Continue to Capitulate and Sell BTC

Bitcoin and Ethereum prices continue to trade sideways this weekend after establishing support at the $23k and $1,700 levels, respectively. The global cryptocurrency market cap remains unchanged at the $1.1 trillion level, as we see 24-hour trading volume for BTCUSD drop by 10%, while ETHUSD’s trading volume saw an increase of 4%. The markets will likely remain flat this weekend as traders await the market’s move next week.

Key Points:

  • The cryptocurrency market remains flat as Bitcoin price holds above $23k.
  • One of Bitcoin’s largest miners, Core Scientific, sold more Bitcoins than it mined in July.
  • BTC is likely to wait until Monday to decide on its next move when US markets open.

Miners Continue Capitulating and Selling Bitcoin

After last month’s report from CryptoQuant revealed that BTC miners are moving coins out of their wallets in a possible capitulation event, Core Scientific, one of Bitcoin’s largest miners by hashrate, announced that it had sold more Bitcoins than it had mined in July.

According to a press release published on August 5th:

“During the month of July, the Company sold 1,975 bitcoins at an average price of approximately $22,000 per bitcoin for total proceeds of approximately $44 million. As of July 31, 2022, the Company held 1,205 bitcoins and approximately $83 million in cash on its balance sheet.”

While the company sold 1,975 Bitcoins, it had only mined 1,221 Bitcoins, amounting to an excess of 754 coins sold at an average price of $22k to cover various expenses.

The $16.5 million in excess sales provided cash flow to pay for capital investments related to increasing data center capacity and payments for a 100k Bitmain ASIC miners ordered in 2021.

Whether Core Scientific’s (NASDAQ: CORZ) excess Bitcoin sales are a bullish sign is up for debate. While it’s a good sign that the company continues to expand operations, the fact that 754 coins were sold in July could mean that the short-term sentiment for Bitcoin isn’t quite as bullish.

The good news is that Core Scientific’s stock remains relatively healthy, showing a 16.40% growth in the past week, signaling that the Bitcoin mining company is satisfying investors and remains in a strong position for further gains. The current market cap of Core Scientific is $948 million, and the company’s stock has been up over 80% in the past month.

Bitcoin Price

Bitcoin is trading at $23.1k, holding firm above the $23k support line. While the trading volume shows a slight decline, down 12% in the past 24 hours, the decrease can be easily attributed to the weekend rather than to bearish sentiment.

Bitcoin price chart

1D BTCUSD // Source: CoinMarketCap

While the S&P 500 and NASDAQ fell slightly yesterday, they registered weekly gains, which kept Bitcoin’s price above the current support line. BTC continues to look for the stock market to decide on its next moves, and its price will remain relatively flat until next week when US markets open.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.

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