Bitcoin Starts Week At One-Month Low Amid Market Uncertainty and Miner Capitulation
Summary:
As Bitcoin commences a new trading week lingering at a one-month low, market participants and analysts are carefully watching its performance amidst fluctuating U.S. macroeconomic cues. American jobless claims are identified as potential catalysts for market turbulence. Bitcoin miners are currently facing a "capitulation" phase, adjusting to post-halving realities, with mining difficulty expected to drop by 1.3% this week. Furthermore, Bitcoin's price points around $66,000 and $67,300 are emerging as critical to maintaining market stability. Moreover, Bitcoin whales continue to hoard coins, reinforcing market expectations of a potential upside.
After multiple failed attempts at surpassing the $70,000 mark, Bitcoin has taken a negative turn as it commences another week at a one-month low. This prompts market watchers and experts alike to speculate about the potential sway of either bulls or bears over the forthcoming market activities. Bitcoin was visibly impacted by American macroeconomic data and the Federal Reserve's remarks last week, with a deficit of nearly 5% to its value, causing a temporary slip below $65,000. This week, the looming U.S. employment statistics may cause some surprises amidst fluctuating U.S. inflation signals. Therefore, market participants are adopting a "wait and see" approach until more decisive market shifts manifest.
We observe Bitcoin miners acclimating to the new reality after halving, with the current "capitulation" phase in progress, reducing mining difficulty by around 1.3% this week. The critical price points for Bitcoin hover around $66,000 and $67,300, acting as a tight trading corridor. We note a notably tranquil macroeconomic week ahead, with only U.S. jobless claims having potential to induce volatility in the crypto market.
Extracts from FedWatch Tool by CME Group suggest the initiation of rate cuts commencing possibly at the Fed's September meeting. Consequently, market observers predict that Bitcoin needs to maintain its support level at $66,000 to steer clear of seller domination, which could possibly coerce quick liquidations from the bulls. Bitcoin network dynamics continue adjusting post-halving, with mixed results across the landscape.
Subsequently, Bitcoin's network fundamentals reflect recent gains, with Bitcoin miners continuing their adjustment phase to the new economic order. According to analytics platform CryptoQuant, the Bitcoin market is exhibiting resilience against the challenges being faced by miners post-halving.
Data also suggests an increase in the number of smaller-volume Bitcoin wallets, now numbering 16.16 million, which is the highest since June 2022. This indicates a renewal period for smaller scale traders. Additionally, Bitcoin whales continue to hoard coins, with coins purchased even prior to the U.S. Bitcoin ETF launch remaining largely dormant. Projections indicate that the activity of these large-volume traders translates into an expected market upside in the ensuing weeks and months.
Published At
6/17/2024 11:01:38 AM
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