US CPI data exceeded expectations and reached a 40-year high. After that, expectations that the Federal Reserve will falter and raise interest rates by 100 basis points gained strength. However, the markets eased today as the index returns to 75 basis points. The leading crypto Bitcoin price came to the gates of 21 thousand dollars again. However, BTC miners have increased their output since last month. So how will this development affect the BTC price?
Bitcoin miners netflow volume reaches ATH
According to IT Tech, Bitcoin miners have sent more than 14,000 BTC for swap in one block, as we reported on Kriptokoin.com. He emphasized that the transfer from the miner wallet to the exchange is not a bullish news for the market. He added that they identify mining pool wallets in their metrics as all participants in the pool, including these individual miners.
However, one user said that this Bitcoin is not reflected in the spot market or derivatives. Meanwhile, Glassnode noted that the Net Flow Volume of BTC miners on a 7-day MA basis reached an all-time high of $1,779,953 (ATH). The previous ATH was $1,700,940 recorded in the first week of January 2022.
CryptoQuant CEO Ki Young Ju stated that this exit does not end in the exchange wallet. According to Ki Young Ju, custody is more likely to go to his cold wallet. It is also possible to use it as a custody service or some OTC agreements. Hence, he concluded that this is neutral or bullish news.
How will BTC affect price performance?
IT Tech also stated that open interest has increased and the market is likely to see higher prices soon. According to the report, a decline in Bitcoin miner reserves has been recorded in the past two weeks. But this is likely to be a great indicator that confidence in the price reversal has dropped.
However, Anthony Pompliano emphasized in his report that with increasing inflation, the price of Bitcoin is in a downward trend. He also added that it may be true that Bitcoin is not a good hedge against CPI.
Meanwhile, Bitcoin prices have increased by 0.70% in the last 24 hours. BTC is changing hands at an average of $20,794 at press time. 24-hour trading volume fell 14% to approximately $25 billion. Bitcoin hit an all-time high of $69,000 about 8 months ago. On the other hand, it later went on a downward trajectory and declined to $ 18 thousand. The leading crypto has been fluctuating between $18,000 and $22,000 for a while. BTC is currently 70% off the ATH level.
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