Bullish Bitcoin Reversal? Retail Investors Flood Back As New Addresses Hit 4-Month High

Recently, the price of Bitcoin (BTC) has entered a consolidation phase, fluctuating between $61,000 and $62,000 after falling slightly to $58,000 on June 24. Although retail investors have shown renewed interest along with their institutional counterparts, the market is facing mixed bullish signs and potential storms.

Retail Investors Return To Bitcoin

The latest social media postscrypto analyst Ali Martinez highlights the resurgence of retail investors, as shown by the four-month high in new BTC addresses reaching 432,026, adding to the idea that investors are betting on an increase in the price of BTC in the coming months, despite the recent price. to waver.

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In a separate post analyzing the recent action of the BTC price, Martinez also suggested that the largest cryptocurrency in the market is currently locked within the same channel, with a possible multiple of $ 63,200 or $ 63,800 if the lower bound holds $ 62,500.

Especially, Martinez quote critical resistance areas of $65,795 and $78,700 as important targets if BTC breaks above them.

However, not all news is good in the Bitcoin market. In the last 72 hours, BTC miners have four sold for more than 2,300 BTC estimated at $145 million. This selling pressure adds to the ongoing sale by the US and German governments of seized BTC.

Mining Industry Under Pressure

The mining industry is facing challenges due to low network fees and reduced block rewards due to the Hafuza event in April.

Kaiko research notes that average network charges have dropped from $3 to $5, a significant drop from around $45 in January. Half-saw block rewards decrease from 6.25 BTC to 3.125 BTC, which affects the income of miners.

This revenue squeeze has put pressure on miners, eroding profits while fixed costs such as energy, wages, and rent remain unchanged. The decline in network fees further contributed to the decline in revenue.

Historically, Bitcoin price rallies following Halving Events have helped miners compensate for the drop in rewards. However, the price of Bitcoin has remained unchanged since April 19 software update.

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In April, fees rose briefly to around $150 due to increased mining non-fungible tokens (NFTs) on the BTC blockchain. Although this temporarily relieved the miners, the payouts have returned to average levels.

According to Bloomberg, Marathon Digital, one of the largest Bitcoin miners, sold 390 BTC in May and plans to sell more tokens to manage its funds.

Kaiko Research warns that the risk of forced sales by miners may continue in the coming months. As a result, the industry is expected to see consolidation as miners seek to “consolidate assets” and “increase efficiency.”

Notable examples include the “takeover attempt” by the Riot Blockchain miner of Bitfarms Ltd. and the recent CleanSpark Inc. deal. to acquire Grid Infrastructure Inc. for $155 million all-stock transaction.

At the time of writing, BTC it still covers the middle of its range at $61,880, down 2% in the 24-hour period, erasing all gains in the last 30 days, as losses in this time frame amount to 9%.

Featured image from DALL-E, chart from TradingView.com