In Hong Kong today, Bitcoin made a recovery of 2% after the introduction of spot Bitcoin ETFs, surpassing $63,300. However, recent data from on-chain analysis platform Cryptoquant suggests that Bitcoin miners are inclined to sell their BTC assets.
Cryptoquant reported significant transfers of BTC from miners to spot exchanges, indicating an increase in the movement of Bitcoin from miners to spot exchanges, which could potentially indicate market instability. It is believed that Bitcoin miners are selling their BTC to cover operational costs following the Bitcoin halving event. Despite similar price levels, miners are currently earning about half of the BTC revenue compared to a few weeks ago.
Miners play a crucial role in validating and securing the network, but a long-term trend of negative profitability among miners could have an impact on Bitcoin’s price. Experts recommend continuous monitoring to assess the situation’s long-term impact.
In other cryptocurrency news, Bitcoin ETFs began trading in Hong Kong today, while 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 keep interest rates at current levels. Additionally, the US unemployment rate for April will be announced on May 3rd.
Expectations for a reduction in US interest rates this year have been narrowed down to just one anticipated cut. The cryptocurrency market, which typically thrives in an environment of 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 came from unexpectedly strong data from the Personal Consumption Expenditures (PCE) price index, which is the Federal Reserve’s preferred measure of inflation.
Disclaimer: The information in this article is not investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
