In a sweeping move, Bitcoin miners have reduced their reserves to 1.9 million BTC, a level unseen in 14 years, due to substantial liquidations prompted by April 2024’s fourth halving event. The event slashed block rewards from 6.25 BTC to 3.125 BTC, severely impacting miner revenues. Facing mounting operational costs, many miners were compelled to sell over $2 billion worth of cryptocurrency in June alone, marking the steepest monthly sell-off this year.
Compounding this, market pressures forced even entities with fewer reserves to sell off holdings, exacerbating the situation. Notably, large-scale investors, colloquially termed “whales,” dumped over $4 billion worth of Bitcoin into the market amidst plummeting prices, exacerbating volatility. Concurrently, the German government’s sale of $3 billion in Bitcoin underscored a market fraught with instability, exacerbated by prices dipping below $61,000.
Amidst this turbulence, Mt. Gox’s announcement of a $9 billion repayment plan in Bitcoin and Bitcoin Cash (BCH) for creditors further unsettled the market. Nevertheless, cryptocurrency analyst Ali Martinez remains optimistic, citing historical trends. Martinez highlighted Bitcoin’s daily RSI entering oversold territory thrice in the past two years, preceding price hikes of 60%, 63%, and 198%, respectively. With current RSI readings suggesting oversold conditions once more, Martinez suggests that now might be an opportune moment for investors to consider buying the dip.
In today’s highlighted crypto news, South Korean exchange Upbit is set to launch BLAST this week, adding a new dimension to an already dynamic market landscape.