📢Recent crypto market declines analyzed by CryptoQuant reveal three primary factors driving the downturn:
- Miner Capitulation: With miner revenues plunging by 55%😓, miners are selling more Bitcoin to cover costs, exacerbating selling pressure as indicated by increased transfers to exchanges⛏💸
- Decreased Stablecoin Issuance: The absence of new issuances of stablecoins like USDT and USDC implies reduced liquidity and potentially higher price volatility, limiting new capital inflows into the market📉💲
- Outflows from Bitcoin ETFs: Major spot Bitcoin ETFs, including those from Fidelity and Grayscale, have witnessed substantial outflows, adding to the selling pressure on Bitcoin prices📊
These factors have instilled fear among short-term investors, prompting them to sell off holdings. However, CryptoQuant highlights that historically, the average realized price support level for short-term holders at around $62,400 could play a stabilizing role in the near term. Looking ahead, CryptoQuant suggests that stabilizing miner revenues and increased inflows from stablecoins will be critical for any potential market recovery🚀💰
🔍Crypto Scouts news team
