- Bitcoin miners increased sales of BTC in October, shed $164 million in the asset.
- The third BTC halving cycle is almost over and the asset’s volatility dissipates.
- BTC price sustained above the $35,000 level in November, despite mass sell off by miners.
Bitcoin price is in an uptrend and BTC sustained above the $35,000 level, despite a mass sell-off by miners. According to a Bloomberg report, the top 13 public crypto-mining companies sold a little more than the equivalent of all the BTC they minted in October.
BTC miners sold the asset to take profits during Bitcoin’s October rally. Despite the rising selling pressure on the asset from these sales, BTC continued trending higher. With the third halving cycle nearly complete, BTC price demonstrated low to median volatility, the sign of a maturing asset.
Daily Digest Market Movers: Bitcoin price rally undeterred by miner sell off, dormant BTC wallets transfer the asset
- Bitcoin price noted no notable movements in the past day, exchanging hands at $35,334 on Binance.
- Bitcoin holders observed one of the largest rallies in the cryptocurrency since 2022’s price crash. The October rally inspired miners to reduce their BTC holdings, leading to a liquidation-to-production ratio of 105% for mining firms like Marathon Digital Holdings and Core Scientific Inc, according to a Bloomberg report.
- The top 13 mining firms sold a total of $164 million in BTC; the asset, however, resisted the selling pressure from the mass sell-off and continued its uptrend.
- Macro analysts at Ecoinometrics analyzed Bitcoin’s volatility in the third halving cycle and concluded that the long tail of extreme volatility events is gone. Further, the median volatility of the current cycle is lower and this is a sign of a maturing asset.
Bitcoin volatility across three halvings
- Periods of high volatility in Bitcoin have passed and the asset is maturing. This is conducive to institutional adoption and flow of capital from institutional investors into BTC.
- Will Clemente, co-founder of Reflexivity Res, noted that the spread between Bitcoin's 3-month futures basis and the 3-month US treasury yield is now clearly positive; over 2% for the first time in one and half years.
- Clemente’s thesis is that the Bitcoin price rally is likely to drive demand higher, supporting a liquidity increase in the asset.
Bitcoin three-month futures basis
- Two dormant Bitcoin wallets from thirteen years ago were activated again on November 7, as detected by btcparser.com. The two wallet addresses transferred roughly 100 BTC, valued at $3.5 million according to the current BTC exchange rates.
Technical Analysis: Bitcoin price rally to $46,330 likely as BTC extends gains
Technical analyst behind the X handle, @rektcapital, noted that Bitcoin price typically begins an uninterrupted rally to new all-time highs, nearly 200 days post the BTC halving. The fourth BTC halving is approaching in April 2024.
The analyst has set a target of $46,330 for Bitcoin price, as seen in the chart below:
BTC/USD 1-day chart
The analyst expects a pullback to $42,100, post the run up to $46,330. At the time of writing, Bitcoin price is $35,330 on Binance and capital has started rotating into DeFi, Layer-1 blockchain tokens and meme coins, while BTC trades sideways. This is typical of a bull market and the asset is expected to continue its upward trend if BTC sustains above the psychological barrier at $30,000.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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