Large amounts of bitcoin are moving into crypto exchanges as miners begin to liquidate their bitcoin holdings amid the financial crisis.
The bitcoin price rallied after Fed Chairman Jerome Powell hinted at a slowdown in rate hikes in December and future sessions. The price of BTC reached a high of $17,194 with a jump of more than 200 percent in trading volume. Data on the blockchain indicates that miners facing financial problems are effectively selling their bitcoin holdings, with the bitcoin hashrate continually decreasing due to the decline in mining activity.
Miners’ capitulation limits bitcoin’s rally
In a December 1 tweet, Whale Alert reported that an unknown wallet moved 10,050 bitcoins worth more than $171 million to the crypto-currency exchange Coinbene at 08:48 UTC. In addition, there are other downward transactions of BTC in the last 24 hours.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 10,050 #BTC (171,613,338 USD) transferred from unknown wallet to #Coinbenehttps://t.co/spzou46zNP
– Whale Alert (@whale_alert) December 1, 2022
The on-chain IT Tech analyst Has confirmed a 10K outflow from the miner Poolin. The average amount of coins per transaction sent from the wallets of affiliated miners. If miners transfer some of their stash at the same time, it could trigger a drop in the BTC price.
10000 $BTC outflow from Miners!💡 pic.twitter.com/a7jPERPMZk
– IT Tech (@IT_Tech_PL) December 1, 2022
The price of bitcoin is not showing a massive rise despite some whale of a build-up due to increasing selling pressure from miners. In fact, miners selling 4K BTC this week are pulling the bitcoin price down, marking the fourth peak in 2022. According to on-chain data, BTC transfers from miners to exchanges increased again after BTC fell from 20K to 16K.
Miners’ BTC reserves have decreased by 13,000 BTC over the past few months. They are now at the same level as they were at the beginning of 2022 due to the drop in revenue from the falling price of BTC. In addition, the bitcoin hashrate continues to decline due to the decrease in mining activity.
Will the price of BTC experience a rally due to the Fed’s policy?
The price of bitcoin has climbed nearly 2 percent in the past 24 hours, reaching a high of $17,194. The rally came after Fed Chairman Jerome Powell indicated in his latest speech a slowdown in rate hikes starting in December.
At the time of writing, the price of BTC is trading at $17,103, with a more than 200% increase in trading volume. Crypto-currency analyst Michael van de Poppe predicts a rally to $18.3K. However, he agrees with blockchain data that BTC’s price could face stronger resistance at $18,000.