Sanchez pfp
Sanchez
@delilahhhhh
The behavior of large-scale miners releasing concentrated funds after block production has several immediate impacts on price. Firstly, it increases selling pressure as miners offload significant amounts of cryptocurrency to cover operational costs or lock in profits, often leading to a short-term price drop. This effect is amplified if market liquidity is low, causing sharper declines. Secondly, it can trigger panic selling among retail investors, further driving prices down. However, if the market anticipates this release and perceives it as routine, the impact may be muted, with prices stabilizing quickly. Conversely, in bullish conditions, large buy walls or institutional absorption of the sell-off could limit downward movement, potentially even sparking a rebound. Overall, the immediate price reaction hinges on market sentiment, liquidity, and the scale of the release relative to trading volume.
0 reply
0 recast
0 reaction