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Crypto Miners Rebound After Bitcoin Price Hits June Low
Cryptocurrencies and related stocks pared losses on Tuesday, while bitcoin rebounded slightly after falling to June lows.
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Bitcoin rebounded to $67,300 on Tuesday afternoon after a morning dip of $66,177. The early decline marked Bitcoin’s first dip below $67,000 in June and its lowest level since mid-May, according to data from CoinDesk Indexes. However, Bitcoin has fallen more than 3% in the past 24 hours from its overnight high of $69,711. Prices of other cryptocurrencies have fallen to follow the decline.
“There is no discernible event that is driving this decline,” said Steven Lubka, head of private clients at Swan Bitcoin financial services firm. He noted that Tuesday’s decline was likely “just the result of short-term trader positioning.”
Ethereum fell below $3,500 on Tuesday evening, down 4.6% over the past 24 hours.
Cryptocurrency miners were trading higher on Tuesday after taking the brunt of the early trading. Digital Marathon (MARA) rebounded with a 1.9% gain after plunging 5.5% on Tuesday morning. Riot platforms (REVOLT) rose nearly 1 percent after falling 6 percent in early trading. Clean spark (CLSK) reversed its trend to gain 1.6% on Tuesday, after shares tumbled nearly 7% in the morning.
Spot bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBITS) and ARK’s 21Shares Bitcoin ETF (ARKB), collectively faltered by nearly 3% on Tuesday.
ETF Inflow Series Ends
Spot BTC ETFs saw $64.9 million in outflows on Monday, ending a 19-day streak of inflows, according to data from Farside Investors. Bitcoin Trust in Grayscale (GBTC) and Invesco Galaxy Bitcoin ETF (BTC) led the outflows to $39.5 million and $20 million, respectively. BlackRock ETF and Bitwise Bitcoin ETF (BITB) were the only ETFs to see inflows on Monday.
However, this series of inflows has not translated into price gains for BTC.
“While spot bitcoin ETFs have seen large inflows in recent weeks, some market participants have felt that the price gains have been muted,” Lubka said. “Some of these inflows were due to participants arbitraging the CME futures market premium, shorting the futures and buying the ETF.” However, arbitrage trades were unlikely to account for a large portion of the inflows, Lubka added.
“The simple answer is simply that the bitcoin market is a very large market, with short-term movements dominated by leveraged traders pushing billions in volume per day,” Lubka said. “Spot ETFs, while a welcome entry, are far from the largest players in the bitcoin market.”
Overall, spot bitcoin ETFs have seen $15.62 billion in inflows since their launch on Jan. 11. BlackRock led the gains, with $17.6 billion in inflows. Grayscale lagged, seeing $17.97 billion in outflows since converting to a spot bitcoin ETF.
Crypto Stocks, Bitcoin Price
Elsewhere, cryptocurrency exchange Monetary base (CURRENCY) trimmed losses to 2.3% on Tuesday. COIN shares are trading in a cup base with a 283.48 buy point. The stock may be in a management phase.
Despite Tuesday’s decline, bitcoin’s price is up 60% so far this year. The world’s leading cryptocurrency hit an all-time high of $73,798 on March 14.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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