Will Bitcoin Recover After $5.6Bn Miner Sell-Off? Analysts Weigh In on $110K Support and 2020-Style Bottom

The cryptocurrency market extended its slide on Thursday, with Bitcoin price briefly falling under $110,000 before regaining some ground.

CoinGecko data showed that the Bitcoin price dropped to $107,500 from $110,400, representing a decline of 3% in the past 24 hours. 

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Most major altcoins followed the same path. Nine of the top ten non-stablecoin assets traded lower, losing between -0.9% to -5.3%.

The drop came after a surge in Bitcoin transfers from miners to exchanges, hinting at mounting selling pressure. 

Just a few weeks earlier, miners were adding to their Bitcoin holdings despite higher costs and tighter margins. That trend reversed as falling transaction fees cut into revenue, worsened by April’s halving and higher network difficulty.

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The Bitcoin price extended its weekly decline, trading near $107,500 after falling approximately 10.8% over the past seven days. 

Similar sell-offs have marked late stages of previous market cycles, often reflecting caution among investors.

Data from Farside shows that Bitcoin exchange-traded funds have seen outflows of more than $108M since the start of the week, adding to the market’s selling pressure. 

According to Derbit data, options traders have placed over $1.7Bn in bets that the Bitcoin price will rise above $130,000 before year-end.

Polymarket data suggests that participants assign better than a 50% chance to that scenario in 2025. 

(Source: Polymarket)

Analysts at CryptoQuant called the recent $19Bn drawdown a “leverage flush,” suggesting it’s a market reset rather than the start of a long decline.

During Friday’s crash, spot volume hit $44B (near cycle highs), futures $128B, while OI dropped $14B with only $1B in BTC long liquidations. 93% of OI decline wasn’t forced – this was a controlled deleveraging, not a cascade.

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