Bitcoin narrowly avoids a record-breaking 10 weeks of losses
Bitcoin’s June 5 close price of $29,997, just above the $29,422 threshold needed to be in the green, ended a record 9-week pattern of finishing in the negative. In the last day, the price of Bitcoin increased by 5%, rising from $29,984 to $31,600 at the time of writing. The price increase also signifies Bitcoin’s second consecutive break through of the $30k obstacle in the last two weeks. Prior to dropping below $30k, the price had risen to approximately $32k in late May. At the time of publication, Bitcoin was trading at $31,300, still over the $30k resistance.
It is unusual for bitcoin miners to start selling their holdings during a market downturn; often, they prefer to hold and wait for a bear market before selling. The sales continued despite the recent rise in Bitcoin prices. This would imply that miners believe the price is only temporary and anticipate additional declines in the value of Bitcoin. However, as it is also a wise decision to maintain mining activities, the impulse to sell can also be seen as a conservative attitude to the macro situation. “The profitability of the mining sector has been impacted by BTC’s low prices and intense competition. Recent sell-offs are likely intended to fund businesses’ ongoing expenses, according to Juan Pellicer, a research analyst at Into The Block, who spoke with CryptoSlate.
It is unusual for bitcoin miners to start selling their holdings during a market downturn; often, they prefer to hold and wait for a bear market before selling. The sales continued despite the recent rise in Bitcoin prices. This would imply that miners believe the price is only temporary and anticipate additional declines in the value of Bitcoin. However, as it is also a wise decision to maintain mining activities, the impulse to sell can also be seen as a conservative attitude to the macro situation. “The profitability of the mining sector has been impacted by BTC’s low prices and intense competition. Recent sell-offs are likely intended to fund businesses’ ongoing expenses, according to Juan Pellicer, a research analyst at Into The Block, who spoke with CryptoSlate.
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