Large amounts of Bitcoin moving to crypto exchanges as miners start to liquidate their BTC holdings amid the financial crunch. The price of bitcoin went up after Federal Reserve Chair Jerome Powell said that rate hikes might be slower in December and in the future. At its peak, the price of bitcoin was $17,194, and trading volume increased by more than 200 percent. The on-chain data shows that the hashrate of Bitcoin is steadily going down because less mining is going on. This suggests that miners who are having trouble making money are selling their Bitcoin.
Bitcoin Miners Selling Restricts Rally
At 8:48 UTC on December 1, a mysterious wallet reportedly transferred 10,050 Bitcoin to the cryptocurrency exchange Coinbase, valuing the transaction at over $171 million, as reported by Whale Alert in a tweet. There have been additional Bitcoin sales in the last day.
IT Tech, an on-chain analyst, verified that miner Pooling had withdrawn $10,000. The average number of coins transferred between wallets held by associated miners during a single transaction was $3. Large numbers of miners transferring funds from their reserve may drop bitcoin’s price.
Even though some whales are buying up Bitcoin, miners are selling more and more, which keeps the price from going up significantly. This week’s drop in Bitcoin’s value is due in large part to the 4,000 BTC miner sales that triggered the fourth Bitcoin price spike of 2022. After Bitcoin’s price 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 a total of 13,000 BTC from their reserves. Now, despite lower earnings due to the BTC price drop, it’s back to where it was at the beginning of 2022. As a result, Bitcoin hashrate keeps dropping as mining activity declines.
Will BTC Price Witness Rally Amid Dovish Fed?
In the past 24 hours, the price of bitcoin has increased by nearly 2%, reaching a high of $17,194. The rally started after Federal Reserve Chair Jerome Powell said in his most recent speech that rate hikes would slow down starting in December.
As of this writing, the BTC price is at $17,103 and trading volume has increased by more than 200%. Michael van de Poppe, a crypto analyst, projects a price increase to $18.3K. While he agreed with on-chain data suggesting BTC price resistance at $18,000, he did not expect it to be as strong.
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