Crypto News

Bitcoin Faces Supply Pressure And Miner Sell-Off As Trading Week Ends

As the trading week comes to a close, Bitcoin is hovering in the $63,000 to $64,000 range. A significant supply barrier has formed, with approximately 5.45 million addresses having acquired 3.03 million BTC between $64,300 and $70,800.

This concentration of holdings at higher prices poses a risk of a steep correction. Should Bitcoin’s price continue to decline, these holders might opt to sell to mitigate losses, thereby exacerbating the downward pressure on the market.

In addition to this supply-side concern, Bitcoin miners have significantly increased their selling activity. Over 30,000 BTC, equivalent to roughly $2 billion, has been offloaded by miners in June alone.

This represents the fastest pace of miner sell-offs in more than a year, adding another layer of downward pressure on Bitcoin’s price.

The situation is further complicated by negative net inflows into Bitcoin ETFs. As of June 21, 2024, the net inflow for Bitcoin ETFs has summed to a negative $106 million for the day, contributing to a total outflow of $545 million for the entire trading week. Notably, Grayscale’s GBTC experienced an outflow of $34.2 million, while BlackRock’s IBIT saw no net flow yesterday.

Bitcoin ETFs Net Inflow Has Decreased To $14.56 Billion

After 112 trading days, the cumulative total net inflow into Bitcoin ETFs has decreased to $14.56 billion. This sustained outflow indicates waning investor confidence and could signal further bearish sentiment in the near term.

These factors combined – the significant supply barrier from previous buyers, increased miner sell-offs, and persistent negative ETF net inflows – suggest that Bitcoin may face continued challenges.

Investors will be closely monitoring these developments, as any further decline in Bitcoin’s price could trigger additional sell-offs, potentially leading to a more pronounced market correction.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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