This month of June has been one to forget Bitcoin and its investors, with the crypto-flagship getting a big price drop. Recent developments reflect that Bitcoin miners especially those who were responsible for this price drop with a wave of sales from them.
Bitcoin Miners Are Being Sold At A Shocking Rate
Market Intelligence Platform IntoTheBlock revealed on X (formerly Twitter) posted that Bitcoin miners have sold over 30,000 BTC ($2 billion). This is the fastest pace in over a year that these miners have withdrawn their BTC funds. IntoTheBlock added that this wave of sales was fueled by the latter half eventwhich has strengthened the profit margins of these miners.
This is the last time half event saw miners’ rewards halved from 6.25 BTC to 3.125 BTC, which ultimately affected their income and profits. Bitcoin’s hot price action since hitting a new all-time high (ATH) in March has also not helped, as these miners want to prioritize their financial stability as soon as possible rather than hope for further price appreciation from Bitcoin.
This has caused these miners to load a large amount of their goods, mainly to cover operating costs. However, BTC should bear the brunt of the capture of these miners, seeing as how the top crypto fell from around $70,000 at the beginning of the month to less than $63,000 at the time of writing.
Crypto analyst Willy Woo also recently highlighted the importance of this sale of miners to Bitcoin, he said that the flagship crypto will only recover if “weak miners Death and the hash rate recovers.” He explained that weak handshakes will involve inefficient miners running into trouble and other miners will be forced to upgrade their hardware to more efficient ones.
Regardless of what happens, the price of BTC is expected to make a dramatic recovery once these miners complete their holdings. However, at the moment, Bitcoin is at risk of falling and falling below the psychological level of $60,000 if this great pressure to sell to the miners he insists.
Another Reason BTC Is at More Downtrend Risk
Crypto analyst Ali Martinez recently mentioned that about 5.45 million addresses bought 3.03 million BTC between $64,300 and $70,800. He added that that list creates a major supply bottleneck, putting BTC at risk of a “steep correction.” Martinez it said that those owners who bought on that list could sell their holdings to reduce their losses, which could strengthen downward pressure on Bitcoin.
A Bitcoinist too reported later that Bitcoin fell below the short term holders they earned a profit of $66,200. This is important as the failure of BTC to bounce back quickly enough may force this class of investors to cut their losses or secure whatever little profit they have left on their Bitcoin investment.
The featured image was created with Dall.E, a chart from Tradingview.com
Source link
