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Bitcoin (BTC) fell to a low of $ 28,950 on January 22, thanks to miners who likely sold massive amounts of their property – but major buyers made sure the dip was minimal.

According to data from on-chain monitoring resource CryptoQuant, we saw massive outflows from mining pools in recent days, which in turn corresponded to BTC / USD Lose 20% in a week.

The daily outflow of F2Pool reached 10,000 BTC

As of January 15, the outflow will flow from F2Pool – currently the largest mining pool which comprised about 15% of the total hash percentage, notably started to rise. By January 17, the daily outflows had reached 10,000 BTC ($ 313 million), continuing for three days in a row before returning closer to normal levels.

F2Pool appears to be responsible for the vast majority of outflows, which does not necessarily mean that miners sold BTC in the open market, but simply that they took mined coins from their original wallets.

F2Pool BTC outflow daily chart. Source: CryptoQuant

Regardless of the pool’s motives, the numbers provide a welcome counter-argument explaining Bitcoin’s sudden price drop this week. Previously, theories included the controversy around stablecoin Tether (USDT) like a recovering dollar were touted as the root causes of the downward volatility.

Meanwhile, bitcoin exchange balances have remained constant in January in contrast to the general downward trend that has been taking place since the summer of 2019, data shows.

Exchange Bitcoin reserves chart. Source: CryptoQuant

The sale comes amid massive grayscale purchases

Had the F2Pool coins formed a great abundance of new BTC supply for sale in the market, it is likely that the buyer in particular would have soaked them up quite quickly.

Such as Cointelegraph reportedAsset management giant Grayscale added notable amounts to its assets under management this week, potentially helping BTC / USD avoid a deeper plunge.

Grayscale BTC holdings. Source: Bybt.com

The company recently published Q4 2020 report, stating that institutions accounted for 93% of its inflow, reinforces the idea that it is the main buyer of any reserve BTC supply.