Bitcoin News: Miners’ Reduced Holdings Point Bitcoin Traders to Short-Term Bearish Target of $60K
Crypto News– Traders anticipate a deeper correction in Bitcoin (BTC) prices over the coming weeks, despite strong equity markets and favorable U.S. crypto policies. This outlook is driven by increased selling activity from miners and general profit-taking.
Alex Kuptsikevich, FxPro’s senior market analyst, shared in an email to CoinDesk on Friday, There’s a new wave of dollar strength and demand for equities. Risk asset demand is gradually diminishing, forming a sequence of declining intraday highs for bitcoin. He added, Bitcoin continues to test the strength of the 50-day moving average, but it doesn’t find enough reason to dive lower. Such persistent testing of the lows sets the bears up for quick success with their next target at $60,000.
Miners, who provide extensive computing resources to maintain the Bitcoin network, may be among the groups selling their holdings. Analysts from the Japanese crypto exchange bitBank noted, Bitcoin’s upper potential may be limited due to miners’ cash demand. Since May, bitcoin miners’ net position–BTC inflow minus BTC outflow–has been gradually declining, suggesting their operation has become tight after the Bitcoin network went through halving in April. They added, The increasing net BTC outflows from miners do not necessarily put pressure on the price of bitcoin. However, prices tend to stagnate.
Bitcoin Miners Pare Holdings, Prompting Traders to Set Bearish Target at $60K
On-chain data from CryptoQuant indicated a rise in the transfer of BTC from mining pools to exchanges, hitting a two-month high on June 9. Additionally, selling through professional over-the-counter desks spiked to the highest daily volume since late March. Bitcoin’s price jumped from $68,000 to $70,000 on Wednesday following a cooler-than-expected U.S. CPI report for May but quickly retraced these gains on Thursday after the Federal Open Market Committee (FOMC) reduced their rate cut forecast for this year from three times to once.
Major tokens such as BNB Chain’s BNB, XRP, and Solana’s SOL have dropped more than 10% since Monday. Riskier meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have seen losses of 15%. These declines coincided with continuous outflows from U.S.-listed spot BTC exchange-traded funds (ETFs), which have seen a net outflow of $500 million across 11 products since Monday. This marks their worst week since the end of April, when they lost $1.2 billion over six days.
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