BTC miner reserve has dipped after the fourth Halving event this year, and miners have resorted to BTC selling; over 30k BTC offloaded in June.
Miners of Bitcoin offloaded more than 30,000 BTC in June, equivalent to approximately $2 billion. This offload represents the most significant monthly sell-off of the year. In addition, this substantial liquidation has resulted in a 14-year low of 1.9 million BTC in miner reserves, as miners have begun to sell off assets to remain solvent following the recent Bitcoin Halving.
June’s Bitcoin Selloff
The Miners’ fourth Bitcoin Halving event in April 2024 has considerably affected miners’ profitability, which reduced block rewards from 6.25 BTC to 3.125 BTC. This event led to the liquidation of their holdings, mainly by lowering operations to cover operational expenses. The Bitcoin price is significantly lower than the $80,000 threshold, serving as the miners’ breakeven point.
Recent large-scale transactions by Bitcoin whales, who have unloaded over $4 billion worth of BTC, have echoed this trend. The German government recently divested $3 billion from its Bitcoin reserves. The price of Bitcoin has fallen below $61,000, which has further exacerbated the market’s volatility.
The announcement by Mt. Gox further unnerved the market regarding the repayment of $9 billion in Bitcoin and Bitcoin Cash (BCH) to creditors, which coincided with this decline. Nevertheless, crypto analyst Ali Martinez has emphasized historical trends to imply a potential rebound.
He observed on X (formerly Twitter) that the #Bitcoin daily RSI had reached oversold territory three times in the past two years, resulting in $BTC price surges of 60%, 63%, and 198%, respectively. With the RSI again in oversold territory and #BTC currently below $62,000, it may be an ideal time to purchase the decline.
In the interim, The Wolf of All Streets, an additional distinguished analyst, published a comprehensive technical analysis in his daily newsletter. He observed that Bitcoin had reentered the range lows and was on the brink of reaching $60,000, a critical support level for investors. In addition, the analyst noted that the 50-day moving average (M.A.) was breached a few days ago, and the 200-day M.A., presently at approximately $57,000, is increasing.
“If the range is breached, seek out that region as a source of support.” He declared that the price has stayed above the 200 MA since $28,000. He underscored the importance of the RSI entering the oversold territory, which has not occurred since August 2023, implying that the market may be approaching a bottom.
Crypto Market Look This Week
This week’s market is expected to be crucial for Bitcoin and altcoins, both under substantial selling pressure. Bitcoin experienced a 15% decline in June, while some of the most popular altcoins experienced decreases of 20% to 40%. Additionally, the forthcoming expiration of more than 104,000 BTC options, valued at $6.72 billion, on June 28 exacerbates the situation.
The put-call ratio at Deribit, the largest derivatives exchange, was 0.52, with a maximum pain point of $57,000. The Bitcoin price will likely continue under pressure in the immediate future. Additionally, traders are anticipating the release of critical economic data later this week. This data encompasses the growth rate of the U.S. GDP on Thursday, June 27.
Furthermore, the market is avidly anticipating the release of the Federal Reserve’s preferred inflation measure, the PCE inflation data, on Friday. These events occur concurrently with the expiration of substantial options, resulting in a volatile environment. It could also lower the Bitcoin price below $60,000, potentially attempting to reach the $57,000 support level.