Bitcoin Miners Are Pouring Huge Sums into Spot Exchanges, Will BTC Price Pressure Continue?
With the launch of spot Bitcoin ETFs in Hong Kong earlier today, Bitcoin price made a small recovery of 2% to above $63,300 levels. However, on-chain data shows that Bitcoin miners have been offloading their BTC holdings recently.
Bitcoin Miners Move Large Amounts on Exchanges
Cryptoquant, an on-chain analytics platform, reported significant BTC transfers from miners to spot exchanges. This observation, which shows an increase in Bitcoin movement from miners to spot exchanges, may indicate market imbalance.
It was clear that Bitcoin miners would sell their BTC to cover their operational expenses following the Bitcoin halving event. From a basic perspective, the situation makes sense. Despite similar price levels, miners are currently making about half the BTC revenue compared to a few weeks ago.
Miners play a crucial role in verifying and securing the network by consuming electricity and covering various expenses such as hardware, rent and payroll. In return for these efforts, they receive rewards in the form of Bitcoin.
However, a long-term trend leading to negative profitability among miners could potentially impact Bitcoin’s price. But experts advise not to panic based on this data alone and recommend ongoing monitoring to measure the impact over time.
Macro Factors Affecting BTC Price MovementMiners sent large amounts of money #Bitcoin detect changes
“High volume observations $BTC “Switches from miners to spot exchanges often create a feeling of imbalance in the market.” – With @theCryptolik
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— CryptoQuant.com (@cryptoquant_com) April 29, 2024
Hong Kong Bitcoin ETFs began trading today, while US Bitcoin ETFs continued to see outflows ahead of some major macro events. This week marks major economic events, starting with the US Federal Reserve’s eagerly awaited interest rate decision on May 1.
Analysts estimate there is a 95.6% chance that the Fed will leave interest rates unchanged at their current levels. Also, on May 3, the USA will announce the April unemployment rate. Expectations that interest rates will be lowered in the US this year have been reduced to just one expected cut.
Concerns about persistently high interest rates in the US have been the most significant drag on Bitcoin in recent trading sessions, as the cryptocurrency market thrives in an environment generally characterized by low rates and abundant liquidity.
The latest tension in crypto markets came from unexpectedly strong data from the Personal Consumption Expenditures (PCE) price index, which serves as the Federal Reserve’s preferred measure of inflation.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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