The Price of Bitcoin is Decreasing. The price of Bitcoin has fallen due to several BTC sales, particularly by miners using over-the-counter channels. The market value of Bitcoin started falling on June 7 and kept falling for over two weeks until it finally bottomed out on June 24. Afterwards, Bitcoin remained flat over $60,000 for approximately six days until regaining its previous level of $62,000.
OTC Sales of Mining: The Price of Bitcoin Drops
After the halving on April 20, the miners’ payout was cut in half. Additionally, typical fees have dropped from about $20 the day before the halves to $2 at the end of May. Since the difficulty has only dropped by 5% in the interim, this dynamic has also made life difficult for several Bitcoin miners. Consequently, they have not reaped the benefits of a corresponding decline in consumption despite a steep decline in profits. There came a time when they had to start selling Bitcoins they had saved up over the months or years if they wanted to keep mining responsibly.
Bitcoin miners have been selling BTC over-the-counter and on open marketplaces, according to a report published yesterday by Bitfinex Alpha. Following the halving and subsequent collapse of their revenues, they were compelled to do so to sustain their operations. On the other hand, it shows that the selling pressure has been rising because of the anticipated liquidations from Mt. Gox and the liquidations ordered by German law enforcement.
The Monetization of the Holders
According to Bitfinex analysts’ data, long-term Bitcoin holders started to make money in the second quarter of 2024, when values were higher than the previous cycle’s peak of $69,000. The issue is that profit-making continued after that, albeit on a smaller scale and at a reduced price.
“Although profit-taking is expected in a bull market, the extent of this activity raises concerns,” they warn. A possible extension of the current decline and impact on the medium-term bull market might be caused by long-term holders continuing to take profits at current levels, which we believe is unlikely to happen for an extended period. This could lead to significant short-term downward pressure on the price of bitcoin.
The Price of Bitcoin is Decreasing: A drop in miner sell-offs could signal that the market is stabilizing. Thomas Holdings’ high-profit realization could lead to more price declines if the trend persists. The hilder’s sales should have increased if the miners’ sales were predicted to decrease.
The Trend of the Price of Bitcoin
This dynamic has caused Bitcoin’s price to stall since the beginning of the year. In the last several weeks, several asset-specific variables have fueled the fire, causing digital asset prices to continue falling.
This led to a disappointing first-semester finish, and in June, when long-term investors started selling again, creating an excess supply that hurt the market, Bitcoin also dissociated from U.S. stocks. However, The price level achieved on June 24 (just under $60,000) was in sync with the mid-May low and higher than the early May low, which was touched with the start of the post-halving fall.
The Price of Bitcoin is Decreasing: Since markets frequently react to the news before it happens, the fall that followed the halving began before it took place. Even though it was still over $72,000 on April 8, the price dropped below $62,000 in less than a week. Even after the June 20 halving, the fall persisted until May 1st, when it dropped below $57,000. Yet, Bitcoin’s price has never recouped that amount and has maintained a steady $60k+ level relatively easily.
The OTC Sales of Mining Farms and Holders Lower Bitcoin Prices
Sales of miners probably peaked in May and April and then declined in June. This is partly because miners began to run out of Bitcoin reserves to liquidate and partly due to the difficulty level dropping in May, lowering their costs.
From the end of April or around mid-May, the stock titles of the key American mining companies listed on the stock exchange began to decrease, but between June 24 and 26, they marked a bottom in this phase. May was the most challenging month for the miner, but things appear to have leveled off in June.
But there’s a separate conversation about the holders, who aren’t in a rush to sell unless there are exceptional circumstances. The bitcoin price fell from $70,000 to below $60,000 between June 7 and 24, as selling pressure intensified despite persistently low buying demand. But even this fall appears to have stopped for the time being.
