As always, Bitcoin (BTC) is a cryptocurrency that never ceases to surprise and shock investors from all sectors. Bitcoin (BTC) has been around since 2009 and ever since the launch, its prices have been fluctuating. This is the reason the majority of the investors still consider Bitcoin (BTC) to be an extremely volatile asset.

The very first time Bitcoin (BTC) managed to get the attention of the majority of the investors was back in 2017. The platform continued gaining rally and growth with respect to its price and market capitalization. However, right at the beginning of the year 2020, its price plunged all the way down to below $5k per BTC.

Since then, BTC was gradually gaining price growth and continued to do so all the way up to January 10, 2021. On January 10, 2021, Bitcoin (BTC) ended up suffering another plunge, and then after 3 weeks, it managed to achieve all-time highs and continued doing so until February 22, 2021.

One of the most recent plunges that Bitcoin (BTC) has experienced is from February 22, 2021, when its prices took a dip from $59k per BTC and came all the way down to $40k per BTC. Although BTC did manage to bounce back up to $40k per BTC, yet it is struggling to cross the $50k mark since then. As of now, the price of BTC is hovering around $47k per BTC.

As the recent dip was experienced, the majority of the investors have started blaming the bitcoin-mining groups. The investors are stating that it is the bitcoin-mining sector that is responsible for the recent BTC price dip.

However, the analysts and intelligence teams from the cryptocurrency sector are denying this theory. One of the cryptocurrency intelligence firms known as Coin Metrics has recently denied the allegations imposed over the bitcoin-mining sector.

According to Coin Metrics, the BTC-mining sector only had a very small role to play downstream of the BTC price. One of the senior analysts from the R&D firm, Karim Helmy has also talked about the involvement of BTC-miners in the asset’s price drop.

Helmy revealed that the reason why the miners have played a minor role is that they have very small holdings and deposits in the exchanges. The number of BTC and transaction volumes observed for BTC-miners are way less than the rest of the flows taking place on the exchanges.

The analysts have revealed that the total deposits made by the bitcoin-miners on the exchanges are just 5.5% of the total deposits. Therefore, no matter many transactions and outflows they make for BTC, their contribution would still be very less when it comes to lowering the price of BTC.

 

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