Crypto analysts are pushing back against the narrative that the current BTC rally is being fuelled by a liquidity crunch afflicting bitcoin mining pools in China. The liquidity crunch, which is caused by an ongoing regulatory crackdown in that country, has reportedly left miners unable to sell their BTC holdings.
Miners Are Selling
The analysts are instead backing a counter-narrative which points to institutional investor interest as the reason for the current BTC rally. Using data to support their assertions, the analysts suggest that the current bull run, which has different characteristics with the one in 2017, is likely to continue as institutional investor interest continues to grow.
First to present data that debunks the Chinese liquidity crunch narrative is Lucas Nuzzi of Coinmetrics. In remarks made via a Twitter thread, Nuzzi argues that mining pools not selling their BTC stocks at this point is just “part of a long-term trend.” Indeed, the Coinmetrics data does show that mining pools,…