BTC Price Drops 1% at Wall Street Open as Bitcoin Miners Worry Analysts

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Bitcoin (BTC) saw a new hint of volatility at the December 27 Wall Street open as US equities entered the final trading week of the year.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewBitcoin is enjoying new volatility

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it fell around 1% at the opening bell.

Despite only moving $150, the event was still noticeable on shorter timeframes as Bitcoin avoided any form of volatility for several days.

The move came in response to a 0.6% drop in the S&P 500 at the open, as the Nasdaq Composite Index fell 1.4%.

The US Dollar Index (DXY) reacted in kind, making up for lost ground earlier to return to its December 25 position.

US Dollar Index (DXY) 1 hour candle chart. Source: Trading View

With BTC movements still relatively muted, analysts’ attention has focused on potential catalysts, with Binance Coin (BNB) still a cause for concern amid ongoing FUD on its issuer, the world’s largest crypto exchange Binance. .

The biggest risk to the crypto market is BNB, Matthew Hyland reiterated on December 26.

It currently has a market cap of $38.4 billion. Potentially over $20 billion could be wiped out if the support fails. How much is used as user collateral to support other parts? A BNB outage would reverberate elsewhere.

BNB/USD still traded above the $240 mark on the day, which is an important line in the sand for bulls to hold.

BNB/USD 1 hour candle chart (Binance). Source: Trading View

Outside of crypto, the news that China would end the COVID-19 quarantine for international arrivals from January 8 did not have a material impact on the performance of risky assets.

Opinions differ on the contagion of Bitcoin miners

Elsewhere, concerns were still focused on Bitcoin miners, with opinions diverging on the impact of the current price action on their businesses.

Related:Bitcoin hodlers see record unrealized loss of 8 million BTC, data shows

Analyzing the popular hash ribbon metric, Charles Edwards, CEO of asset manager Capriole, issued a stark warning.

This is by far the most brutal capitulation by Bitcoin miners since 2016 and possibly ever, he said.

The hash ribbons’ capitulation captured the lowest Bitcoin hash rate reading of 2022 as miners go bankrupt and default under great pressure from squeezed margins globally. Annotated chart of Bitcoin hash ribbons. Source: Charles Edwards/Twitter

As Cointelegraph reported, in the opposite camp, former BitMEX CEO Arthur Hayes previously dismissed miner issues as a significant potential source of contagion for BTC price action.

Even if they were to sell their reserves en masse on the open market, he claimed earlier in December, it would be something of a drop in the ocean in terms of supply versus demand.

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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