In June, Bitcoin and its investors faced significant price declines, with Bitcoin miners being a major factor in the sell-offs. Market Intelligence platform IntoTheBlock reported that Bitcoin miners sold over 30,000 BTC ($2 billion), the fastest pace in over a year, following the recent halving event. The halving event reduced miners’ rewards from 6.25 BTC to 3.125 BTC, affecting their profitability. The miners offloaded their holdings to cover operational costs, leading to a decline in Bitcoin’s price from $70,000 to below $63,000.
Crypto analyst Willy Woo emphasized the impact of miners’ sell-offs on Bitcoin, stating that Bitcoin will only recover once weak miners exit the market. He suggested that inefficient miners go bankrupt, forcing others to upgrade their hardware. BTC’s price is expected to recover once miners liquidate their holdings, but in the meantime, it risks further decline if selling pressure persists.
Another reason for Bitcoin’s potential downtrend is the significant supply barrier formed by addresses that bought BTC between $64,300 and $70,800. Analyst Ali Martinez warned that holders in this range may offload their holdings to limit losses, intensifying downward pressure on Bitcoin. Bitcoin has also dropped below the short-term holders’ realized profit of $66,200, indicating potential further losses if the price does not rebound soon.
In summary, Bitcoin’s price decline in June was influenced by miners selling off their holdings to cover operational costs following the halving event. The sell-offs, combined with a significant supply barrier and short-term holders’ realized profit, have put downward pressure on Bitcoin’s price. The market awaits a recovery once miners complete their liquidation process, but in the meantime, Bitcoin faces the risk of further decline below key support levels.
