- This massive liquidation has pushed miner reserves to 1.9M BTC, a level not seen in 14 years.
- The revenue of Bitcoin miners was greatly affected by the fourth halving event in April 2024.
Bitcoin miners sold around $2 billion worth of cryptocurrency in June, or more than 30,000 BTC. So far this year, this is the worst monthly sell-off recorded. In addition, when miners began selling off their holdings to keep afloat after the latest Bitcoin Halving, this massive liquidation has pushed miner reserves to 1.9 million BTC, a level not seen in 14 years.
The revenue of Bitcoin miners was greatly affected by the fourth halving event in April 2024. Which reduced block rewards from 6.25 BTC to 3.125 BTC. Because of this, many businesses, particularly those with less assets, had to sell off their holdings to pay for running expenses.
The breakeven threshold for miners is at the $80,000 juncture. And the price of Bitcoin is now far lower than that. This pattern is borne out by the recent massive sales of Bitcoin by “whales,” who sold more than $4 billion worth of the cryptocurrency.
In addition, the German government recently sold $3 billion worth of Bitcoin. With Bitcoin’s price falling below $61,000, market volatility has reached new heights.
Expert Predicts Rebound
The market has been even more unsettled after Mt. Gox announced that it will be repaying creditors around $9 billion in Bitcoin and Bitcoin Cash (BCH), which likely led to this fall. However, according to crypto expert Ali Martinez, there may be a comeback if we look at past tendencies.
On X, he made the observation that the Bitcoin daily RSI has reached an oversold area three times in the last two years. Leading to price increases of 60%, 63%, and 198%, respectively. Perhaps now is the time to purchase the dip, since the relative strength index (RSI) has returned to the oversold zone and bitcoin’s price has dropped severely.
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