Crypto Market Got sudden roadblock as Bitcoin dumped near $64,000 from $70,000 overnight. The market saw its result Altcoins here and there dumped 15%-40%. But Why the market dumped?ย
๐ ๐ด๐ฒ๐ท๐ฐ๐ฝ๐ณ๐ ๐ธ๐ฟ๐ 123
1. Miner Capitulation
Lower Miner Revenues: Miner revenues have dropped by 55%, forcing miners to sell more Bitcoin to cover costs.
Increased Transfers to Exchanges: More Bitcoin is being moved from miners' wallets to exchanges, which can drive prices down, often indicating they are selling.
2. Lack of New USDT and USDC Issuance
The stablecoin market isn't seeing new issuances, meaning less new money is entering the crypto market. This can reduce liquidity and increase price volatility.
3. Outflows from ETF Funds
Significant withdrawals from major ETFs like Fidelity and Grayscale are creating selling pressure on Bitcoin. For example, Fidelity saw an outflow of over 1,384 BTC on June 17th.
4. Fear Among Short-Term Investors
Short-term investors (holding Bitcoin for less than 155 days) are selling off due to these pressures, fearing further price drops.
5. Spent Output Age Bands (%)
40% of the sent Bitcoins are in the 3M-6M range, 20% are in the 6M-12M range, and the remaining portion is mixed. These sent Bitcoins will create selling pressure.
๐ผ Data Credit - CryptoQuant
๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ
Crypto Market doesn't always works straight forward, there're metrics that shouldn't be overlooked while analysing Bitcoin.ย
๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น๐ธ๐น