Bitcoin's Price Could Get Challenged Further if This 1 Miner's Decision Becomes an Industry Trend
In June, cryptocurrency-mining company Bitfarms (NASDAQ: BITF) sold 3,352 Bitcoins (CRYPTO: BTC) -- more than half of the Bitcoins the company was holding at the time. Considering more than 19 million Bitcoins have been mined so far, this may seem like a drop in the bucket. But it's more complex than that.
Bitcoin's price has increased drastically over the past few years, largely because of an imbalance in supply and demand. And this imbalance was aided by the actions of miners like Bitfarms, Marathon Digital, Riot Blockchain, and others. And if Bitfarms's decision to sell becomes a pervasive trend, it could cause the price of Bitcoin to drop further.
It may seem like an oversimplification, but the price of Bitcoin increases when there's more demand than supply. And the price goes down when there's more supply than demand. Put another way, the price goes up when there are more buyers than sellers, and vice versa.
Source Fool.com
