The queen of cryptocurrencies lost 12% in one month and returned to its levels at the beginning of May.
While bitcoin remained above $70,000 for several days at the beginning of June, it is now falling sharply. It even fell below the symbolic mark of $60,000. Its price was $58,890 on the evening of June 24, according to data from the Coinmarketcap site.
According to Rania Gule, market analyst at XS.com, bitcoin is facing “resistance amid continued outflows from bitcoin ETFs over the past six days.” Investors are selling their bitcoin ETFs and there are fewer buyers than sellers. These net outflows therefore lower the price of the cryptocurrency.
According to Fairside Investors, bitcoin ETFs, for example, recorded an outflow of $174 million on Monday June 24. The decline in interest among traditional investors in bitcoin accentuates this phenomenon.
Miners who resell their bitcoins
At the same time, according to bitcoin analyst Willy Woo, this drop in price is also explained by the “capitulation of miners (of bitcoins, editor’s note) after the halving of their rewards”, following the halving last April.
“Miners are selling bitcoins to pay for new bitcoin mining machines, as the old hardware is no longer profitable.”
The weakest miners are therefore closing up shop and liquidating their bitcoins, hence the difficulty for bitcoin to return to its historic highs.
Tuesday June 25, the technical signals all referred to the lowest levels of early May. At the time, bitcoin had reached $56,000.
