Bitcoin Miners Dump Huge Quantity On Spot Exchanges, BTC Price Pressure to Continue?
With the launch of the spot Bitcoin ETFs in Hong Kong earlier today, the Bitcoin price has registered a minor recovery of 2% shooting past $63,300 levels. However, on-chain data suggests that Bitcoin miners have been offloading their BTC holdings recently.
Bitcoin Miners Move Huge Quantity on Exchanges
Cryptoquant, an on-chain analytics platform, has reported a significant transfer of BTC from miners to spot exchanges. This observation, indicating a surge in Bitcoin movement from miners to spot exchanges, can signal market imbalance.
It was very obvious that Bitcoin miners were going to sell their BTC in order to cover their operational expenses after the Bitcoin halving event. From a fundamental standpoint, the situation is logical. Miners are currently generating approximately half the BTC revenue compared to several weeks ago, despite similar price levels.
Miners play a crucial role in validating and securing the network by expending 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 prolonged trend leading to negative profitability among miners could potentially impact Bitcoin’s price. However, experts advise against panicking solely based on this data and suggest continuous monitoring to gauge its impact over time.
The miners sent a large amount of #Bitcoin to spot exchanges
“Observing high volumes of $BTC coming from miners to spot exchanges often creates a sense of imbalance in the market.” – By @theKriptolik
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— CryptoQuant.com (@cryptoquant_com) April 29, 2024
Macro Factors Affecting BTC Price Movement
While the Hong Kong Bitcoin ETFs go live for trading today, the US Bitcoin ETFs continued to see outflows ahead of some key macro events. This week marks significant economic events for the United States, kicking off with the Federal Reserve‘s eagerly awaited interest rate decision scheduled for May 1.
Analysts forecast a 95.6% likelihood that the Fed will keep interest rates unchanged at their present levels. Moreover, on May 3, the U.S. will release the April unemployment rate. Anticipations for a reduction in U.S. interest rates this year have diminished to only one expected cut.
Concerns about sustained higher U.S. interest rates posed the most significant drag on Bitcoin in recent trading sessions, as the cryptocurrency market typically thrives in an environment characterized by low rates and ample liquidity.
The latest strain on 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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