June was a month to forget Bitcoin and its investors, with the flagship cryptocurrency experiencing significant price declines. Recent developments demonstrate this Bitcoin miners were largely responsible for these price drops and the resulting wave of sales.
Bitcoin miners are selling at an alarming rate
IntoTheBlock market intelligence platform revealed on X (formerly Twitter) post that Bitcoin miners have sold over 30,000 BTC ($2 billion). This is the fastest pace in over a year in which miners have disposed of their BTC holdings. IntoTheBlock added that the reason for this wave of selling is recent sell-offs event by halfwhich squeezed the profit margins of these miners.
The last one event by half saw miner rewards halve from 6.25 BTC to 3,125 BTC, which ultimately affected their revenue and profitability. Bitcoin’s tepid price action since hitting a novel all-time high (ATH) in March hasn’t helped either, as these miners want to prioritize their immediate financial stability rather than count on more price growth from Bitcoin.
This prompted these miners to offload a significant part of their holdings, particularly to cover operational costs. However, BTC must bear the brunt of these miners’ capitulation, seeing the flagship cryptocurrency plummet from around $70,000 at the beginning of the month to below $63,000 at the time of writing.
Crypto analyst Willy Woo also recently highlighted the importance of miners selling off Bitcoin, stating that the flagship cryptocurrency will only recover after “weak miners die and the hash rate will come back.” He explained that the embrace of faint hands would mean the bankruptcy of unskilled miners, while other miners would be forced to upgrade their equipment to more productive ones.
Whatever happens, the BTC price is expected to see an impressive escalate as miners liquidate their holdings. However, in the meantime, Bitcoin risks falling further and falling below the psychological level of $60,000 if this occurs. huge sales pressure the miners make their living.
Another reason why BTC risks further downtrend
Crypto analyst Ali Martinez I recently mentioned that approximately 5.45 million addresses bought 3.03 million BTC worth between $64,300 and $70,800. He added that the range represents a significant supply barrier and BTC risks a “sharp correction.” Martinez stated that holders who bought in this range may offload their holdings to limit their losses, which could further intensify downward pressure on Bitcoin.
Bitcoinist too recently reported that Bitcoin has fallen below short-term holders realized profit of $66,200. This is crucial because the failure of BTC to rebound quickly could force this category of investors to cut their losses or hedge what little profit they have left on their Bitcoin investments.
Featured image created with Dall.E, chart from Tradingview.com
