01 Dec 2022
More than 10K BTC Have Been Moved To A Crypto Exchange. Are Miners Selling?
The price of bitcoin increased after Federal Reserve Chair Jerome Powell indicated that he might slow the pace of rate hikes in December and the coming sessions.
With trading volume rising by over 200%, the BTC price peaked at $17,194.
According to on-chain data, mining activity is dropping, meaning miners with financial difficulties are selling their Bitcoin.
Miners' capitulation is capping Bitcoin's rally
On December 1 at 8:48 UTC, an unknown wallet reportedly sent 10,050 Bitcoin to the cryptocurrency exchange Coinbene, according to a tweet by Whale Alert.
This amount is equivalent to over $171 million. Additionally, other BTC sales have occurred in the past 24 hours.
IT Tech, an on-chain analyst, verified an outflow from miner Poolin of 10K.
The average number of coins in each transaction from miner accounts. The price of Bitcoin (BTC) could drop if miners simultaneously move some of their reserves.
However, rising selling pressure from miners prevents the Bitcoin price from showing any significant increase despite some whale accumulation. Bitcoin's price has fallen this week due to the selling of 4,000 BTC by miners, the fourth such spike so far in 2022.
After the price of bitcoin dropped from $20,000 to $16,000, on-chain data showed that miners once again increased BTC transfers to exchanges.
Over the past few months, miners have lost around 13,000 BTC from their reserves. Despite lower earnings due to the BTC price drop, it is now at the same level as at the beginning of 2022.
Additionally, less mining activity has contributed to a continuing decrease in Bitcoin's hashrate.
Is There Going to Be a Rally in Bitcoin's Price Even With the Fed Being Dovish?
The bitcoin price has increased by almost 2% in the past day, reaching a new high of $17,194. The rally started after Federal Reserve Chair Jerome Powell said in his most recent speech that rate hikes would begin to slow down in December.
As of this writing, the BTC price is at $17,103, with trading volume up by more than 200% from when this article was first published. Michael van de Poppe, a crypto analyst, sees a price increase to $18.3K shortly.
His prediction that the Bitcoin price could encounter stronger resistance at $18,000 was consistent with on-chain data.
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.
