The Bitcoin hash tape points to the capitulation of miners as holders increase

Haru Invest

The biggest news in the cryptoverse for Nov. 23 includes Bitcoin’s hash tape metric indicating an impending miner capitulation, on-chain data revealing investors are taking advantage of low prices, and Bitcoin and Ethereum making up 91 % of Bitfinex’s total reserves.

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The impending convergence of BTC hash tape signals the capitulation of miners

Bitcoin (BTC) miners have been selling at the most aggressive rate in the past two years, which indicates that the upcoming hash rate adjustment will be negative in the next epoch.

Bitcoin hash ribbons are often used to identify price lows. When the hash tape signals an imminent miner’s capitulation, the price of Bitcoin falls.

Currently, hash tape convergence signals that the end of this compounding period is almost over and an upturn in the market is likely.

Bitcoin on-chain data shows a ray of light in a dark market

After the FTX crash, Bitcoin struggled to recover its bear market price of around $20,000. Especially over the weekend of November 19-20, Bitcoin remained below $16,000.

While this may be a bearish price, it was seen as a major buying opportunity for many. Data on the chain shows that the number of wallets holding Bitcoin has increased while the number of addresses with non-zero balances is decreasing.

Graph showing the growth of net addresses on the Bitcoin network from January 2021 to November 2022 (Source- Glassnode)
Graph showing the growth of net addresses on the Bitcoin network from January 2021 to November 2022 (Source- Glassnode)

Bitfinex reserves are 91% Bitcoin, Ethereum

Cryptocurrency exchange Bitfinex’s Bitcoin and Ethereum (ETH) holdings account for 91% of its total holdings. This percentage is 63% for Coinbase, 15% for Binance and 52% for Crypto.com.

According to the exchanges’ reserves test, the Bitcoin and Ethereum reserves of 91% of Bitfinex are equal to 207,356.67967717 Bitcoin and 1,225,600 Ethereum.

US Senators want the Justice Department to hold FTX executives accountable for the collapse

US Senators Elizabeth Watten and Sheldon Whitehouse have written a letter to the US Department of Justice (DOJ). They asked the DOJ to hold FTX executives “to the fullest extent of the law” responsible for the collapse of FTX.

US Congressman Defends Decentralization, Blames SBF, Gensler, CeFi for FTX Collapse

US Congressman Tom Emmer has argued that the FTX crash was a failure of centralized finance (CeFi), not a failure of cryptocurrencies.

Emmer also said FTX founder Sam Bankman-Fried (SBF) and US Securities and Exchange Commission (SEC) chairman Gary Gensler also share the blame.

Referring to the relationship between the SEC and SBF, Emmer said the SEC was working with SBF and gave it special treatment that other exchanges were not getting.

Record quantities of Bitcoin leave exchanges primed for contagion fallout

In the last 30 days, 136,882 Bitcoins have been withdrawn from exchanges, equal to 0.7% of the total circulating supply.

Net exchange position change
Net exchange position change

the chart above also shows massive Bitcoin outflows since 2016 and marks the current outflow levels as the highest. Even at the height of the Terra (LUNA) crash contagion, an estimated 120,000 Bitcoins had left the exchanges.

Mango Market hacker’s attempt to exploit Aave fails

Mango Market exploiter Avraham Eisenberg moved $40 million USD Coin (USDC) into Aave (AAVE) with the aim of borrowing Curve DAO Token (CRV) at the short. This strategy is known as Eisenberg’s “highly profitable trading strategy”, with which he has previously exploited the mango market.

However, in the case of the CRV token, Eisenberg’s plan didn’t pan out as the community rallied behind the CRV token and it caused it to spike 46% in the last 24 hours.

Hackers steal $42 million from Fenbushi Capital founder’s wallet

Fenbushi Capital general partner Bo Shen was attacked by thugs, who stole $42 million from his personal wallet on Nov. 10.

Shen disclosed the Nov. 23 attack via his personal Twitter account. According to blockchain security firm Beosin, the hack resulted from a private key compromise.

The newest mining rigs increase the difficulty to eliminate the competition

Cybersecurity analyst Matt C drew attention to the growing pressure of the latest mining rigs on previous generations of miners.

Considering that hashing costs $0.07/kWh, Antminer S19XP emerges as the most profitable mining rig.

News from across the Cryptoverse

Genesis is meeting with investors to get the loans back on their feet

The Genesis CEO has released a letter informing Genesis customers that the executive team is meeting with potential investors to find a solution to address the loan services illiquidity issue. The letter said Genesis expects to decide on a course of action in the coming days.

Apple will buy the rights to the book from SBF

Renowned author Michael Lewis had spent six months with SBF before the exchange collapsed and will be writing a book shedding light on SBF’s crypto empire. The book is slated to turn into a feature film, and Apple is close to signing a book rights deal with Lewis, according to MacRumors.

Onomy Raises $10M to Merge DeFi and Forex

The Onomy protocol has raised $10 million from investors such as Bitfinex and Ava Labs during its private funding round. The protocol aims to converge DeFi and the Forex markets.

Cryptocurrency market

In the past 24 hours, Bitcoin (BTC) is up 2.73% to $16,566, while Ethereum (ETH) is up 3.97% to $1,172.

Top earners (24 hours)

Biggest Losers (24 hours)

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