Bitcoin hash ribbon points at miner capitulation as holders increase


The biggest news in the cryptoverse for Nov. 23 includes Bitcoin hash ribbon metric’s indication of an upcoming miner capitulation, on-chain data revealing investors taking advantage of the low prices, and Bitcoin and Ethereum consisting 91% of Bitfinex’s total reserves.

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BTC hash ribbon upcoming convergence signals miner capitulation

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

The Bitcoin hash ribbons are often used to identify price bottoms. When the hash ribbon signals an upcoming miner capitulation, the Bitcoin price falls.

Currently, the hash ribbon convergence signals that the end of this capitalization period is nearly over, and an upwards turn in the market is likely.

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

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

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

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

Bitfinex’s reserves are 91% Bitcoin, Ethereum

Crypto exchange Bitfinex’s reserves of Bitcoin and Ethereum (ETH) 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’ proof of reserves, Bitfinex’s 91%-large Bitcoin and Ethereum reserves equate to 207,356.67967717 Bitcoins and 1,225.600 Ethereums.

U.S. Senators want justice department to hold FTX execs accountable for collapse

U.S. Senators Elizabeth Watten and Sheldon Whitehouse composed a letter to the U.S. Department of Justice (DOJ). They requested DOJ to hold FTX executives “accountable to the fullest extent of the law” of the FTX collapse.

U.S. Congressman defends decentralization, blames SBF, Gensler, CeFi for FTX collapse

U.S. Congressman Tom Emmer argued that the FTX collapse was a failure of centralized finance (CeFi), not a failure of crypto.

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

Referring to the relationship between the SEC and SBF, Emmer said that the SEC was working with SBF and gave him a special treatment that other exchanges weren’t getting.

Record quantities of Bitcoin leave exchanges in readiness for contagion fallout

Over the past 30 days, 136,882 Bitcoins were withdrawn from the exchanges, which equates to 0.7% of the total circulating supply.

Exchange net position change
Exchange net position change

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

Mango Market hacker’s attempt to exploit Aave fails

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

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

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

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

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

Latest mining rigs amp up difficulty to zone out competition

Cyber security analyst Matt C drew attention to the growing pressure of the latest mining rigs upon previous generations of miners.

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

News from around the Cryptoverse

Genesis is meeting investors to get lending back up on its feet

Genesis CEO published a letter informing Genesis clients that the executive team is meeting with potential investors to come up with a solution to fix the illiquidity problem of the lending services. The letter said that Genesis is expecting to decide on a course of action in the coming days.

Apple to buy rights of book on SBF

Famous author Michael Lewis had spent six months with SBF before the exchange collapsed and will write a book that sheds light on SBF’s crypto empire. The book is expected to turn into a feature film, and Apple is close to inking a deal for the book rights with Lewis, according to MacRumors.

Onomy raises $10M to unite DeFi, Forex

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

Crypto Market

In the last 24 hours, Bitcoin (BTC) increased by 2.73%  to trade at $16.566, while Ethereum (ETH) spiked by 3.97% to trade at $1,172.

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