- A large amount of Bitcoin has been moved from miners to spot exchanges.
- Despite no change in pricing, miners are now earning around half as much Bitcoin.
After Bitcoin ETFs were introduced in Hong Kong today, BTC had a little 2% recovery, going beyond $63,300. The latest on-chain data, however, shows that Bitcoin miners are increasingly liquidating their holdings.
A large amount of Bitcoin has been moved from miners to spot exchanges, according to Cryptoquant, an on-chain analytics company. This finding suggests a potential imbalance in the market, since there has been a significant influx of Bitcoin from miners to spot exchanges.
Covering Operational Costs
It was a foregone conclusion that after the Bitcoin halving event, miners would liquidate their holdings to pay operating costs. The scenario makes sense when seen from a basic perspective. Despite no change in pricing, miners are now earning around half as much Bitcoin as they were a few weeks ago.
By using power and paying for things like hardware, rent, and wages, miners validate and secure the network. They get compensated with Bitcoin for their work.
But if miners’ profitability continues to decline, it may affect Bitcoin’s price. On the other hand, analysts say not to freak out because of this data alone and to keep an eye on it to see how it changes over time.
Major U.S. economic events are happening this week, beginning on May 1 with the highly anticipated interest rate decision by the Federal Reserve.
The majority of analysts (95.6%) expect the Federal Reserve to maintain current interest rates. Also, the US will announce the unemployment rate for April on May 3. Interest rate cuts in the United States are less likely to occur this year, with just one decrease anticipated.
Highlighted Crypto News Today:
Terraform and Do Kwon Counter SEC’s $5.3B Demand with $1M Proposal
