BTC price fell 1% at the Wall Street opening as bitcoin miners worried analysts. The flavor of BTC price volatility is returning as U.S. stocks start trading nearing the annual close. The attention of experts is on an altcoin.
Eyes on this altcoin as Bitcoin falls!
TradingView data followed Bitcoin (BTC), which fell nearly 1% on the opening bell. Even though it only contained a $150 move, the event could still be noticeable on the lower timeframes. Meanwhile, Bitcoin has avoided any kind of volatility for several days. The move came in response to the 0.6% drop in the S&P 500 at the open. Also, the Nasdaq Composite Index fell 1.4%. The US Dollar Index (DXY) responded in the same way, making up for earlier lost ground to return to its December 25 position.
US Dollar Index (DXY) 1-hour candlestick chart / Source: TradingViewWhile BTC movements are still relatively quiet, analysts’ attention is focused on potential catalysts on an altcoin. Because BNB is still a concern amid the ongoing ‘FUD’ on Binance, the largest global crypto exchange that is its issuer. “BNB is the biggest risk to the crypto market,” Matthew Hyland said on Dec. In this context, Hyland made the following statement:
It currently has a market capitalization of $38.4 billion. It could potentially see $20+ billion wiped if support doesn’t hold. How much is it used as user collateral to support other cryptocurrencies? A BNB dump would be moved elsewhere.
The altcoin is still trading above the $240 level on the day. This stands out as an important line for the bulls to protect.
BNB 1-hour candlestick chart (Binance) / Source: TradingViewcryptocoin.comApart from crypto, news that China will end the Covid-19 quarantine for international flights from January 8 failed to have a significant impact on risk asset performance.
Opinions differ on Bitcoin miner contamination
Elsewhere, concerns still lie with Bitcoin miners. There are different views on the impact of the current price movement on the activities of miners. Charles Edwards, CEO of portfolio manager Capriole, analyzes the popular Hash Ribbons metric. Based on the result of this analysis, he gives a stern warning:
This is the most brutal Bitcoin miner capitulation since 2016 and possibly ever. The Hash Ribbons capitulation has captured the lowest Bitcoin hash rate data of 2022 as miners worldwide went bankrupt and defaulted under massive pressure from shrinking margins.
Bitcoin Hash Ribbons explanatory chart / Source: Charles Edwards/TwitterMeanwhile, former BitMEX CEO Arthur Hayes has talked about miner issues before. However, he denied that this is a major potential source of contamination for BTC price action. In early December, he claimed that even if they sell their reserves wholesale on the open market, there will be a drop in the ocean in terms of supply versus demand.
