After Bitcoin ETFs were made available on the spot market in Hong Kong today, the cryptocurrency saw a slight increase of 2% and crossed $63,300. However, according to recent on-chain data, miners of Bitcoin are selling off their stakes in the cryptocurrency.
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 finding, demonstrating a rise in Bitcoin flow from miners to spot exchanges, can signal market imbalance.
It was highly evident that Bitcoin miners would sell their BTC to cover operational expenditures after the Bitcoin halving event. On the most basic level, the situation makes sense. Even though prices are similar, miners earn about half as much in Bitcoin as they did a few weeks ago.
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 protracted trend that makes miners less profitable might impact Bitcoin’s price. Experts caution against becoming overly alarmed merely on the basis of this data and recommend ongoing observation to assess its effects 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
Read the full post 👇https://t.co/ixBJlu7Dxm
— CryptoQuant.com (@cryptoquant_com) April 29, 2024
Ahead of Several Significant Macro Events,
The U.S. Bitcoin ETFs continued to see withdrawals even as the Hong Kong Bitcoin ETFs opened for trading today. The Federal Reserve’s much-anticipated interest rate decision, set for May 1, is the first of this week’s major economic events for the U.S.
According to analysts, there is a 95.6% chance that the Fed will maintain current interest rates. In addition, the United States will reveal the April unemployment rate on May 3. Anticipations for a drop in U.S. interest rates this year have diminished to only one projected 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 most recent pressure on cryptocurrency markets was brought on by surprisingly robust data from the Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditures (PCE) price index.
