Selling Pressure from Asia Pushes Bitcoin Lower

The Bitcoin price drops despite institutional buys as forced selling from miners and Asian holders pressures the market.

Bitcoin’s price continues to drop, even though institutions are purchasing large amounts of BTC. This ongoing decline is not due to weak fundamentals but strong selling pressure from certain sources. 

A key factor in this selling pressure is the ongoing mining crackdown in China. Despite institutional investors buying billions of dollars in Bitcoin, forced liquidations are driving the price down.

China’s Mining Crackdown Leads to Selling Pressure

China has once again restricted Bitcoin mining, causing a drop in the network’s hash rate by around 8%. While this may seem small, it’s significant since China still controls about 14% of global hash power. 

In 2021, China banned mining in several provinces, at a time when it controlled more than half of the Bitcoin network’s hash rate. Although China’s mining share is smaller now, the recent reduction in hash rate has triggered large-scale selling from miners.

When mining operations are shut down or restricted, miners often have no choice but to sell their Bitcoin holdings to cover losses. This forced selling adds significant downward pressure on the price.

Despite the strong institutional interest in Bitcoin, this selling from miners is a major factor keeping the price low.

Forced Selling from Long-Term Holders and Miners

The selling pressure is coming from long-term Bitcoin holders, particularly in Asia.

These early holders, often referred to as “OG whales,” have started liquidating their positions in response to increased mining restrictions. On-chain data shows that long-term holders have been selling more over the last couple of months.

Miners facing shutdowns also contribute to the selling pressure.

When miners stop operations, they need to sell their Bitcoin to manage losses. This forced liquidation is not driven by market sentiment but by necessity, further increasing selling volume.

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Regional Differences in Bitcoin Trading Activity

The selling pressure appears to be concentrated in Asia, with major exchanges like Binance, Bybit, and OKX showing steady net selling. 

In contrast, U.S.-based exchanges such as Coinbase continue to see net buying, indicating that institutions in the U.S. are accumulating Bitcoin. This regional difference is crucial in understanding why Bitcoin’s price is falling despite institutional interest.

While U.S. institutions are still buying Bitcoin, the selling from Asia is much higher. 

The imbalance between these factors keeps the price under pressure. Once the selling from miners and long-term holders slows down, the market may find stability, and Bitcoin’s price could rise.

Overall, Bitcoin’s current price decline reflects a distribution phase in the market. Forced sellers, including miners and long-term holders, are dominating the market. As the market absorbs this excess supply, prices may stabilize and start moving upward again.