Get the scoop on finance - sign up for mobile alerts
Categories: Bitcoin
| On
June 26, 2021

Crypto Fund Executive Blasts Chinese Miner FUD, Says Bigger Catalysts Drive Bitcoin’s Price

By Daily Hodl Staff

The chief investment officer of crypto investment firm Arcane Assets, Eric Wall, says that Chinese miners are most likely not the primary contributors to the recent bearish price action of Bitcoin.

In a tweet, Wall argues that the amount of Bitcoin that Chinese miners could have sold is just a fraction of the market’s daily volume and thus likely to have very little impact on BTC’s value.

ADVERTISEMENT

“Q: did the miners selling approximately 2,500 BTC total over the past two weeks tank the market? (possibly to finance their relocation out of China)

A: Most likely no. [MicroStrategy CEO Michael] Saylor bought 5x as much, and he is just one guy.

On any bearish/bullish day, >100,000 BTC will change hands *per day*.”

The Arcane Assets CIO points out that only 900 Bitcoin are currently being produced per day, and even when miners have been hoarding, their stock is only roughly five times the daily global production of BTC.

ADVERTISEMENT

“Miners mine 900 BTC/day and could only sell 4,000+/day for multiple days in a row if they’d been hoarding (not the case here).”

According to the crypto investment firm executive, the “measly” daily production of BTC is not a significant contributor to the selling pressure. Wall highlights that sentiment, and not mining behavior, is the key driver of Bitcoin’s price action.

“The market, the overwhelming market, is primarily driven by broad brush psychology. If you speak to enough traders and investors and are able to gauge their sentiment, their fears, their hopes, their stamina… you get a much better grip of what’s going on.”

In addition to market sentiment, Wall says that in the long haul, he expects the development of crypto’s infrastructure to influence the value of the leading cryptocurrency.

“There are, of course, other things that will move markets too on the long-time horizon… capital being passed down from baby boomers to millenials ($70 trillion next 3 decades). On-ramps being built. Better investment instruments. Improved user experience. Demographics changes. Improved regulations and tax treatment.”

ADVERTISEMENT
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Olga Salt/DM7