Bitcoin’s biggest mining pool may be behind BTC’s price reduction, but buyers stepped in

Bitcoin (BTC) fell to lows of $ 28,950 on January 22 thanks to miners likely to sell huge sums of their holdings – but large buyers made sure the dip was minimal.

According to data from a chain monitoring resource on CryptoQuant, the past few days have seen huge outflows of mining pits, which in turn equated to BTC / USD throwing up 20% in a week.

The daily outflow of F2Pool hit 10,000 BTC

Starting January 15, outflows from F2Pool – currently the largest mining pool containing about 15% of the total hash rate – in particular, began to rise. By January 17, daily outflows had reached 10,000 BTC ($ 313 million), these continuing for three consecutive days before returning closer to normal levels.

F2Pool seems to be responsible for the vast majority of outflows, which do not necessarily mean miners selling BTC on the open market, but simply removed mined coins from their original wallet .

BTC F2Pool daily chart outflow. Source: CryptoQuant

Regardless of the motives of the pool, the numbers form a welcome contrast that explains the sharp fall of Bitcoin prices this week. Previously, theories including the debate over stable Tether (USDT) as well as recovering dollars were touted as the root of the down volatility.

Meanwhile, Bitcoin exchange balances have remained steady throughout January in contrast to the general downturn that has been in place since the summer of 2019, data shows.

Bitcoin reserves chart. Source: CryptoQuant

Sales come in the midst of huge Grayscale purchases

If the F2Pool coins had formed a handful of new BTC supplies for sale on the market, it is likely that the buyer in particular would have grabbed them fairly quickly once the buyer was specific.

As Cointelegraph reported, asset management giant Grayscale has added tangible amounts to its managed assets this week, and these could potentially help BTC / USD avoid a deeper dive.

Large-scale BTC Holdings. Source: Bybt.com

The company’s recently published Q4 2020 report, which says that institutions provided 93% of its inflows, further complicates the idea that it is the main buyer of any spare BTC supply.