Fall! Bitcoin and S&P 500 correlation strengthens, miners start hoarding coins again

As the U.S. stock market suffered another sell-off, the cryptocurrency market wiped out last week's gains and has now fallen for the third consecutive day. However, the number of BTC sold by Bitcoin miners has decreased, and the HODL index has begun to rise again, which may suggest that miners believe that the market currently lacks sufficient funds and has lost the potential for large-scale and sustained cash out.

US stock market indices Dow Jones Industrial Average 30, S&P 500 fell about 2%, Nasdaq fell 4% (15:14 GMT). The US job market added 1.4 million jobs in August, bringing the unemployment rate down to 8.4%, a data increase that exceeded market expectations, according to the Financial Times. However, the largest US technology stocks extended their losses as traders looked at a better-than-expected employment report and began to worry about some of the overvalued technology companies that have performed best this year, according to Bloomberg.

The cryptocurrency market once again followed the stock market’s volatility, bringing the total market capitalization down to $333.9 billion from $346 billion earlier.

BTC and S&P correlation chart:

BTC is trading at around $10,284 today. The price is down 4% in a day and 10.5% in a week. Ethereum (ETH) has also erased gains, falling to around $350 after briefly touching $400 earlier today. ETH is down 7% in a day and 20% in a week.

According to data from blockchain analysis firm IntoTheBlock, for Bitcoin to reach $11,000 again, it faces selling pressure from 1.2 million addresses that previously purchased 864,000 BTC. The data shows that more than 1.2 million addresses previously purchased 783,000 BTC, with an average cost of between $19,482 and $9,791.

Meanwhile, almost all top 100 cryptocurrencies are in the red today. Even tron ​​(TRX) (-12%) and EOS (0%) erased gains from Friday.

However, overall, the market is still in a sea of ​​red after a sharp correction, and the worst-hit segments in the past 24 hours are DeFi tokens such as REN (down 22%), SUSHI (down 24%), BAL (down 22%), and YFI (down 21%).

Additionally, while we saw miners moving unusually large amounts of Bitcoin to exchanges, there were signs that the pace of miner selling had slowed, with miners once again starting to hoard BTC in a very short period of time. According to ByteTree data, after cutting Bitcoin’s daily sales by about half since yesterday, the total Bitcoin miner inventory increased by 156 BTC in the past 24 hours.

ByteTree CEO James Bennet previously said that miners often build up BTC reserves during market weakness and wait to sell later. As prices recover, miners may start unloading again. Miners want to get the best price for their Bitcoin, but still need to cover operating expenses. They are usually experts who are well versed in the Bitcoin market. "

Meanwhile, Skew’s sell liquidation data shows that Friday ended badly for many (over)leveraged Bitcoin traders on crypto derivatives exchange BitMEX , with total hourly liquidations reaching $94 million yesterday (UTC). Approximately $500 million in longs were liquidated across global markets last Friday.