Ongoing Pressure: Miner Capitulation and Long-Term Whale Activity

Rising selling pressure from miners continues to pull the price of bitcoin downward. About 4K BTC added selling pressure from miners this week, marking the fourth spike in 2022. Our data demonstrate that transfers from miners to exchanges increased once more as prices decreased from about $20,000 to about $16,000.

Additionally, since late August, miners' BTC reserves have decreased by 13K BTC and are now practically at the same level as at the beginning of 2022. Because the hashprice (miner income modified by the network hashrate) is falling, miners are generating fewer earnings than they formerly did. As a result, although it has declined less than it did in July-August, we are currently experiencing decreasing hashrate (mining activity).

Relatively older whales (10k BTC from 2014) have also started moving coins, and BTC and ETH continue to trade at a discount on the Coinbase exchange compared to Binance, which points out that the demand from US investors and traders is still muted.