Bitcoin (Bitcoin) returned to local highs at the Oct. 25 Wall Street open.
DXY Offers Instant BTC Relief
The S&P 500 and Nasdaq Composite Index are up 1% and 1.3% respectively at the time of writing.
Conversely, the US Dollar Index (DXY) fell to its lowest level since Oct. 6, providing a potential tailwind to seal opportunistic gains in risk assets.
For traders, the intraday status quo has been maintained amid a continued lack of real volatility. Popular Twitter Account Crypto Tony highlight $18,900 is an important zone.
Fellow trader Crypto Ed revealed that it was “still waiting” for a correction to that level before bouncing above $19,100.
“It might go down a little bit more, and when you come back here, that’s going to be your entry for a long time,” he said. youtube updates.
miners under surveillance
Downside risk, on the other hand, was firmly focused on the minors for the day.
Hash rates are at all-time highs, but spot prices are at their lowest in almost two years, and miners continue to battle the most severe profit squeeze in history. Some warn they could soon be forced to sell off their hoarded coins to cover their expenses.
exclusively research piece On this topic, Caue Oliveira, Principal On-Chain Analyst at BlockTrends, focused specifically on hash prices, or earnings per exahash for miners.
“At the moment, the hash price, as we know it as the index, has hit $66,500, the lowest ever recorded,” he explained.
“Total revenue is well off the average annual growth rate. As with all bears, there is one difference: the cost of maintaining operations.”
As of September, public miners had a total BTC balance of 34,509 BTC, a large tranche of liquidity that “can be unloaded as mining pressure continues,” said market analyst Sam Rule. commented.
“Bitcoin could capitulate in the $10,000 to $18,000 range, driven by eventual selling from miners,” said longtime analyst Tuur Demeester. Added.
miners major surrender stage However, August data shows that a prolonged coin distribution does not necessarily have a negative impact on price action.
For example, in early 2021, after BTC/USD cleared all-time highs of 2017, miners embarked on a massive profit-taking campaign, while Bitcoin hit a $58,000 impulse high in April of that year. Bitcoin could not be held back as it reached its value.
According to on-chain analytics firm Glassnode, the sale at the time saw about 30,000 BTC drained from miner wallets in January.
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