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Bitcoin Falls Below $60,000 as US Miners Sell Under Pressure
- Cryptocurrency market analysts attribute the price decline more to the capitulation of Bitcoin miners than to the Mt. Gox news. The price of BTC has returned to $61,500.
- Bitcoin miners are now financially precarious, forced to sell BTC due to economic pressure. This centralization of miners has a significant impact on the price of Bitcoin.
Today, the world’s largest cryptocurrency, Bitcoin (BTC), suffered a sharp fall below the crucial $60,000 support level, falling as low as $58,000 before recovering again. This development came just hours after defunct cryptocurrency exchange Mt. Gox announced its plans to make refunds in BTC starting next week, as reported by Crypto News Flash.
However, some market analysts believe that Mt.Gox should not be blamed. Rather, the capitulation of Bitcoin miners is dragging the situation BTC price fallingaccording to the CNF update.
Bitcoin has fallen below the $60,000 mark, putting all US miners in a financially precarious position, according to Dr Martin Hiesboeck, head of research at Uphold Inc. Dr Hiesboeck explains that miners are now forced to sell all their BTC holdings to cover operating expenses. costs, a scenario he warned against in March. Due to the centralization of miners, their economic actions have a disproportionate impact on the price of Bitcoin.
Furthermore, all ETF investors are currently facing losses. Dr. Hiesboeck predicts that Bitcoin could fall to $48,000 if these investors capitulate. He clarified that this drop is not related to Mt. Gox redemptions or the sale of BTC seized in Germany.
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Bitcoin falls below 60,000. All US miners are now in the red. They have to keep selling everything $BTC Making it to the end of the month. This is the worst case scenario we described in March. Due to the centralization of miners, their actions and economic planning have a huge effect on the price…
— Dr. Martin Hiesboeck (@MHiesboeck) June 24, 2024
Analysis of the Bitcoin Miner’s action through Hash Ribbons
According to Dr. Martin Hiesboeck, Bitcoin’s hashprice has now fallen to around $0.04 per day, approaching the all-time low seen after the halving. With the price of hashish falling below $0.05, miners are facing growing financial strain. The summer capitulation of miners, highlighted in last week’s newsletter, continues, with mining difficulty predicted to decrease another ~4.75% at the next adjustment.
The Hash Ribbons indicator, which tracks miners’ capitulations, shows the 30-day moving average of the hashrate (green line) falling below the 60-day mark (orange line), indicating that miners are shutting down machines due of non-profitability or energy cuts. This trend is ongoing as the 30-day average continues to decline.
Hash Ribbons also help identify potential local lows in the price of Bitcoin. When many miners are unprofitable, they increase selling pressure by dumping BTC to cover expenses and perhaps even their own treasury. This forced capitulation can lead to an easing of selling pressure, creating historically local price lows. Hiesboeck highlights the beauty of this true free market dynamic, pointing out the absence of bailouts for unprofitable Bitcoin miners.
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Massacre of miners: #Bitcoin it is slipping and sliding towards $60,000 (a drop that in percentage terms is very typical of bull markets). As a result, the hash price is now at ~$0.04/day/day, pushing towards the all-time low reached in the aftermath of the halving.
With… pic.twitter.com/cMonoqnBlF
— Dr. Martin Hiesboeck (@MHiesboeck) June 25, 2024
AS reported By Crypto News Flash, Bitcoin ETFs saw massive outflows last week, and this continues today, with Bitcoin ETFs seeing another $170 million worth of outflows on Monday.
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