The crypto winter has hit the crypto mining community hard, and miners are liquidating their BTC holdings in a big way. This is evident when large amounts of Bitcoin (BTC) are being moved to crypto exchange. It hints that miners are offloading their Bitcoin (BTC)holdings significantly during the financial crunch.
BTC prices rallied and started to surge modestly when Fed Chair Jerome Powell hinted that the interest hikes would be less steep in December and the upcoming quarter. The BTC prices surged by 200% to reach $17,194. On-chain data reveals that miners face a financial crunch and are forced to sell their BTC holdings. Another indicator is the falling hash rate which points to declined mining activity.
Miner Retreat Limits Bitcoin (BTC) Rally
Whale Alert, dated December 1, revealed that an unknown wallet moved 10,050 Bitcoin (BTC) worth over $171 million to the crypto exchange Coinbene at 08:48 UTC. This is just one of the many BTC selloff transactions in the last 24 hours.
Another on-chain analyst IT Tech has revealed that there has been a massive 10K outflow from miner Poolin. If miners transfer part of their reserve simultaneously, it could trigger a BTC price drop.
Although there is a giant whale accumulation, this is not reflected in the BTC prices. Miners offloading their BTC holdings to the level of selling 4K BTC this week pulled the price of Bitcoin downward, marking the fourth spike in 2022. On-chain data reveals that BTC transfers to exchanges surged again after BTC tanked from $20,000 to $16,000.
Miners’ BTC holdings have tanked by 13K BTC in the last few months. It has reached a level akin to the beginning of 2022 amid scarcer earnings due to the BTC price crash. Also, decreasing profitability led to less mining activity.