In Hong Kong today, Bitcoin experienced a 2% recovery, surpassing $63,300, following the introduction of spot Bitcoin ETFs. However, recent on-chain data suggests that Bitcoin miners are inclined to sell their BTC assets.
According to Cryptoquant, an on-chain analysis platform, there have been significant BTC transfers from miners to spot exchanges. This increase in Bitcoin movement from miners to spot exchanges could indicate market instability. It has been noted that Bitcoin miners are selling their BTCs to cover operational costs after the Bitcoin halving event. Despite similar price levels, miners are currently earning only about half of the BTC revenue compared to a few weeks ago.
Miners play a crucial role in validating and securing the network by consuming electricity and covering expenses such as hardware and rent. In return, they receive rewards in the form of Bitcoin. However, a long-term trend of negative profitability among miners could potentially impact Bitcoin’s price. Experts recommend continuous monitoring to assess the impact of this situation over time.
In other cryptocurrency news, while Bitcoin ETFs in Hong Kong began trading today, US Bitcoin ETFs are seeing exits ahead of major macro events. This week, the US Federal Reserve’s interest rate decision on May 1st is eagerly awaited. Analysts predict a 95.6% chance that the Fed will maintain interest rates at current levels. Additionally, the US unemployment rate for April will be announced on May 3rd.
This year, expectations for a reduction in US interest rates have been narrowed down to just one anticipated cut. The cryptocurrency market, which typically thrives in an environment characterized by low rates and ample liquidity, has faced concerns over persistently high US interest rates in recent trading sessions. The latest tension in the crypto markets stems from unexpectedly strong data from the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation.
Disclaimer: The information in this article should not be considered investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.