- Bitcoin miners sold over 30,000 BTC in June, a yearly high.
- Bitcoin’s fourth halving cut mining rewards, forcing miners to liquidate holdings.
- Analyst predicts Bitcoin recovery as RSI indicates oversold conditions historically precede surges.
In June, Bitcoin
The income of Bitcoin mining operations took a substantial hit due to the fourth halving in April 2024, which slashed the block reward from 6.25 BTC to 3.125 BTC. Consequently, numerous companies, especially those with limited resources, were compelled to liquidate their Bitcoin to cover operational costs.
The cost of production for miners has reached a break-even point at the $80,000 mark, yet the current Bitcoin price is significantly below this threshold. This trend is echoed by the large-scale disposals of Bitcoin by major holders, or “whales,” who have liquidated over $4 billion of the digital currency.
Furthermore, the German government executed a sale of Bitcoin valued at $3 billion. With the price of Bitcoin dipping under $61,000, the market is experiencing heightened volatility.
Market Analyst Anticipates Recovery
The market’s instability has been exacerbated by Mt. Gox’s announcement that it intends to reimburse creditors with roughly $9 billion in Bitcoin and Bitcoin Cash (BCH), which has likely contributed to the recent decline. Nonetheless, cryptocurrency analyst Ali Martinez suggests a potential rebound, drawing on historical patterns.
Martinez noted on a certain date that the Bitcoin daily Relative Strength Index (RSI) has hit the oversold territory on three occasions over the past two years, each time followed by price surges of 60%, 63%, and 198%. Given that the RSI has once again entered the oversold region and Bitcoin’s value has plummeted sharply, it might be an opportune moment to invest in the current price dip.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
