While Bitcoin continued its downward trend in June, it started the new week with a sell-off and fell to the $62,300 band.
The recent selling pressure in Bitcoin is attributed to Bitcoin sales by crypto mining companies whose revenues have plummeted. Reports show that miners have sold more than $2 billion worth of Bitcoin this month.
Miner sales continue to pressure Bitcoin
After the reward halving took place on the Bitcoin network in April, cryptocurrency miners saw their income reduced by half. In this environment where most miners had to stop their activities, mining companies accelerated their BTC sales to cover their costs until the balance was re-established. This is seen as the biggest factor in the downward trend in Bitcoin price.
Due to many miners stopping their activities, there are sharp decreases in the Bitcoin difficulty rate. The latest Bitcoin hash amount decreased from 88 trillion to 83 trillion. Despite the decrease in difficulty level, miners began to report record low revenues in the last two months due to the impact of the halving. It was reported that mining revenues decreased from an average of $107 million per day before the reward halving to $30 million.
The decline in Bitcoin also negatively affects the ETF market
As such, many small and medium-sized miners who had difficulty continuing their activities had to stop their operations. IntoTheBlock data reveals that Bitcoin miners have sold more than 30,000 BTC worth approximately $2 billion since June alone.
On the other hand, one of the most important factors supporting the Bitcoin price was ETF purchases. The cryptocurrency, backed by Bitcoin ETFs, reached new record highs this year, rising to $73,000. However, the subsequent selling pressure halted Bitcoin’s progress. Some experts are of the opinion that selling pressure may decrease after new balances are established in the mining industry.
However, in the current situation, the downward trend in Bitcoin continues to affect ETFs. Finally, while Bitcoin lost the $65,000 level, an outflow of approximately $200 million was recorded from ETFs.
