The post Bitcoin’s Price Fall Linked to Miner Capitulation and ETF Outflows appeared on BitcoinEthereumNews.com.

South Korea-based analytics platform has disclosed that miner capitulation, stagnant stablecoin issuance, and substantial outflows from major spot Bitcoin ETFs are the main factors behind the Bitcoin pullback.  According to them, the selling pressure from miners and ETFs would have to be reduced for the price to bounce back.  Bitcoin (BTC) continues its bearish extension as selling pressure slowly rubs off Year-to-Date gains, positioning the 30-day return to negative 2%. At press time, Bitcoin was trading at $65k after declining by 3.5% in the last seven days.  Investigating the factors responsible for this unexpected market pullback, South Korea-based on-chain analytics provider CryptoQuant disclosed that miner capitulation, stagnant stablecoin issuance, and substantial outflows from major spot Bitcoin ETFs are the main culprits. According to CryptoQuant, miners’ revenues have declined by 55%, forcing miners to liquidate their holdings to cover their operational costs. In investigating this claim, Crypto News Flash uncovered that more than 1,200 BTC was sold by miners, marking the highest amount recorded in two months. On June 9, more than 3,000 BTC ($209 million) were moved to exchanges by miners with the majority coming from the btc.com mining pool into Binance. Selling activities among US miners have also increased with Marathon Digital (MARA) selling 1,400 BTC ($98 million) since the beginning of the month. Interestingly, these coincided with the temporary correction from $70,000 to $66,000.  CryptoQuant also mentioned that the lack of new stablecoin issuances, specifically USDT and USDC has contributed to the ongoing bearish market. This suggests a considerable decline in new capital entering the market. On the third impactful factor, the researchers mentioned that the substantial outflow of spot Bitcoin ETFs from asset managers like Fidelity and Grayscale has contributed immensely to the ongoing market pullback.  Spot Bitcoin ETFs Recorded Significant Outflow on June 17 According to data…

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Filed under: News - @ June 20, 2024 8:20 am