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Highlights
- Bitcoin Miners have sold over 30,000 BTC worth $2 billion in June so far.
- Strong Bitcoin ETF outflows and sales from the German government's BTC holdings have added to the selling pressure.
- 87% of Bitcoin holders are still in profit, indicating potential for further profit-taking.
The Bitcoin (BTC) price has been facing constant selling pressure, now dropping under the crucial support levels of $65,000. Despite the rally in the US stock market, the Bitcoin price has corrected 10% from its June high of $72,000. During the last week, the BTC price largely underperformed the stock US stock market hitting its one-month low levels in the absence of any fresh catalysts.
Bitcoin Price vs Equity Underperformance to Continue
In the past two weeks, Bitcoin and the overall crypto market have been heading downward as the excitement around the Ethereum ETF approval cools down. Data from IntoTheBlock shows that one of the major reasons the profit-taking is that the crypto market nearly doubled during the period between Q4 2023 and Q1 2024. On the other hand, other sellers have been weighing down on the BTC price.
During this month of June so far, the Bitcoin miners have liquidated over 30k BTC worth $2 billion. One of the major reasons is the recent Bitcoin halving after which the operational costs have shot up and profits declined. As a result, miners have been forced to sell off their BTC holdings.
Along with the Bitcoin miners, there’s an additional selling pressure on the Bitcoin price due to strong Bitcoin ETF outflows shooting past $500 million during the past week. At the same time, the German government has been sending huge BTC from its holdings to exchange, a sign that they are likely selling. The government continues to hold 47,000 BTCs more in its reserves worth $3 billion.
Bitcoin Price Selling Can Continue Ahead
Interestingly, despite the current sell-off, more than 87% of the Bitcoin holders are still sitting in profits. this shows that there’s enough scope for further profit-booking in the market.
Several market analysts believe that the Bitcoin price consolidation can continue until the end of the summer of 2024. The next leg of the Bitcoin bull run is likely to start around September with major fireworks expected around the US elections.
The major focus area for the next week is the release of the PCE price next week on Friday, for the month of May. The decline in the core PCE for May already suggests some downside risks for the core PCE index. Moreover, the spending will face downside risks as well due to weak retail sales, however, personal income might see an improvement, indicated by the stronger-than-expected average hourly earnings.
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