Whales and Miners Offload BTC Ahead Fed Chair Powell Speech

    Bitcoin price failed to hold momentum towards $30,000 after the US Federal Reserve hiked rates by 25 bps, other central banks followed suit and raised interest rates. On-chain data shows whales and miners are selling their BTC holdings as BTC price fell below the key 200-WMA level and remains range bound in 26,500-27,500.

    Meanwhile, US Fed Chair Jerome Powell’s speech is scheduled today on the monetary policy outlook. Recently, other Fed officials remain cautious about the policy outlook and hinted at hawkish views on interest rate hikes. CME FedWatch indicates the probability of a 25 bps rate hike in June has risen over 45% from 15% a week ago.

    Whales and Miners Selling Bitcoin Holdings

    On May 19, CryptoQuant reported that miners’ reserves are indeed decreasing causing significant selling pressure on Bitcoin from miners.

    Bitcoin Miner Flow
    Bitcoin Miner Flow. Source: CryptoQuant

    An on-chain analyst revealed that miner dumped 1750 BTC to crypto exchange Binance on Thursday. The same miner deposited 5,791 BTC last month causing the BTC price to fall massively.

    Bitcoin Miner Reserve on-chain data indicates the reserves dropped from 1,827,457 to 1,825,618 BTC on Thursday, almost 1840 BTC dumped to crypto exchanges. Today, miners have again sold over 350 BTC until now and are expected to continue selling their BTC holdings.

    Bitcoin Miner Reserve
    Bitcoin Miner Reserve. Source: CryptoQuant

    Moreover, whales are dumping Bitcoin into exchanges. On Thursday, an address transferred 10,000 BTC worth nearly $270 million to Coinbase, when the Bitcoin price was trading at $27,620.

    Whales have taken the lead in depositing Bitcoin into exchanges, as evidenced by the early May surge in the Exchange Whale Ratio. Without a doubt, Bitcoin transactions by these whales escalated to high levels, with transfers involving more than 40% of the coins.

    Bitcoin Exchange Whale Ratio. Source: CryptoQuant
    Bitcoin Exchange Whale Ratio: CryptoQuant

    Also Read: Leading Crypto Firm Raising Funds At $1 Billion Valuation

    Bitcoin Price To Fall Below 200WMA

    BTC price fell 2% in the last 24 hours, with the price currently trading at $26,853. The 24-hour low and high are $26,415 and $27,466, respectively. Furthermore, the trading volume has decreased in the last 24 hours, indicating a decline in interest among traders.

    Technical indicators such as Bollinger Bands and RSI indicate weakness in Bitcoin upside momentum, with a potential fall to $24,600.

    Also Read: Bitcoin Going To The Moon In 2023 Summer, Here’s What Elon Musk Says

    Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

    The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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