Bitcoin encountered significant downward pressure last week, dropping to a low of $65,000 on Friday as data from H.C. Wainwright revealed continued selling activity among long-term holders since early June. This trend was exacerbated by additional sales from miners, contributing to the overall bearish sentiment. The Federal Open Market Committee’s hawkish stance further weighed on the cryptocurrency market.
According to analysts, the selling behavior of long-term holders, although not triggered by a specific event, typically influences short-term market dynamics due to the substantial holdings tracked closely by the Bitcoin community.
In a concerning development for spot Bitcoin ETFs, data from Farside Investors indicated their worst week of outflows since mid-March, with 11 U.S.-based ETFs collectively experiencing a net outflow of $580.6 million.
During the week, Bitcoin recorded a 4.3% decline, settling slightly above the $66,600 mark, underperforming major equity indices. Conversely, mining stocks saw a robust 15.7% rally on the back of persistent positive sentiment.
Highlighting the intersection of Bitcoin mining with national energy policies, executives from leading U.S. mining firms met with Republican Presidential candidate Donald Trump at his Mar-a-Lago resort on June 11. Discussions focused on enhancing the country’s energy infrastructure and fostering domestic job creation through mining activities. Trump expressed support for Bitcoin mining in a statement on his Truth Social platform, emphasizing its potential role in countering Central Bank Digital Currencies and advocating for increased domestic production.
The combined market capitalization of 19 Bitcoin miners tracked by H.C. Wainwright surged to a record $26 billion as of June 14 following the recent rally in mining stocks. Despite a 3.9% decline in the network hash rate to 581 EH/s week-over-week, the network difficulty remained stable at 83.7T after a -0.8% adjustment on June 6.
Additionally, hash prices fell by 12.4% week-over-week to $0.054/TH/day, influenced by lower Bitcoin prices and transaction fees.
Responding positively to Trump’s statements, Texas-based miners like RIOT emphasized the potential benefits of integrating miners into the energy grid. RIOT’s head of public policy, Brian Morgenstern, highlighted the importance of enhancing grid stability through flexible power loads facilitated by mining operations.
The evolving dynamics in Bitcoin markets underscore ongoing challenges amid regulatory uncertainties and shifting investor sentiment, with stakeholders closely monitoring developments for further insights into market direction.
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