The chief investment officer for cryptoasset investment firm Arcane Assets has disputed the notion that Chinese miners were the catalyst for Bitcoin’s price dip over the past month.
In a series of tweets published on June 23, Arcane Assets CIO Eric Wall refuted the idea that selling pressure from Chinese miners had caused Bitcoin’s price to tank. As Wall pointed out, MicroStrategy’s Michael Saylor had purchased nearly five times the amount of the reported 2.5k BTC sold by Chinese miners over the last several weeks.
Wall explained that mining selling pressure has a “measly” impact on the broader cryptoasset markets.
He also took issue with the popular stock-to-flow (S2F) model and said investor sentiment is the primary catalyst for Bitcoin’s price movement. Wall said detailed charts and analysis looked “good for newsletters and viral posts” but had little applicability to the markets.
Wall continued, saying the market was overwhelmingly driven by the “broad brush psychology,” and that price fluctuations were a reflection of investors’ aggregate emotional state.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.