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Crypto market in turmoil - Heavy hand of Bitcoin miners?

Sun 16 Jun 2024 ▪ 3 min of reading ▪ by Mikaia A.
Getting informed Event

The cryptocurrency market is currently going through a delicate period, marked by intense selling pressure. This situation is causing traders to break out in a cold sweat as they helplessly watch the main altcoins fall below critical support levels. Although accumulation in Spot Bitcoin ETFs is increasing, the trend of massive selling is worrying investors.

Ouvriers et pièce de bitcoin

The Shocking Impact of Miners on the Price of Bitcoin

Bitcoin, often referred to as the queen of cryptocurrencies, recently surpassed the $71,000 mark, bolstering market actors’ optimism. With the SEC giving its green light to the Ethereum Spot ETF, the euphoria was at its peak, with expectations of imminent historical records.

However, this euphoria was short-lived. A sudden drop in the price of bitcoin dashed hopes of quick gains, plunging investors into perplexity.

Marked bearish candles quickly took over the buying pressures, knocking bitcoin off its upward trajectory. The hypothesis of a bottom below $60,000 is no longer ruled out, fueling speculation.

Experts point to the capitulation of miners as the main cause of this selling pressure, noted CoinTurk. With an average production cost higher than the selling price, miners are forced to liquidate their assets, thus reducing their balances to historically low levels.

Since the beginning of the year, miners’ reserves have dropped from 1.84 million to 1.8 million BTC, a sign of massive selling to cover operating costs post-reduction in block rewards.

Crypto Market Turbulence and Massive BTC Sales

Bitcoin miners recently sold more than 1,200 BTC, or about $80 million, significantly contributing to the recent price correction.

This selling movement prevented Bitcoin from breaking the crucial resistance at $71,800, putting the much-anticipated rally on hold. Data from Glassnode indicates that this phase of miners’ capitulation, while painful, could be coming to an end.

Once this phase is over, a new bullish momentum could emerge, rekindling investors’ hopes.

The flagship crypto must still prove its resilience in the face of these turbulences. The coming days will be crucial in assessing whether the market can overcome this selling phase and move toward new heights.

Investors’ reactions and price evolution will be critical in charting the way forward. One thing is certain, bitcoin miners, through their actions, continue to play a central role in the dynamics of the cryptocurrency market.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.