Bitcoin ETFs in the US have also seen outflows, while the German government continues to sell bitcoins in the market.
The price of Bitcoin (BTC) continues its downward trend this Wednesday (3), stabilizing around US$60,000 after finding resistance near US$64,000 at the beginning of the week.
Network data indicates an increase in selling activities by miners, impacting the market and driving the price down. Additionally, Bitcoin ETFs in the US have seen outflows, while the German government continues to sell seized bitcoins.
Last week, German authorities had already moved 2,240 bitcoins, worth US$142 million, to various exchanges, which may have generated a feeling of fear, uncertainty and doubt (FUD) among investors, resulting in a drop in 2.5% in Bitcoin price this week.
The German Government transferred 1,500 $BTC($94.7M) out again in the past 20 minutes, of which 400 $BTC($25.3M) was transferred to #Bitstamp, #Coinbase and #Kraken.
German Government currently holds 44,692 $BTC($2.82B).https://t.co/6V5KFoyQa7 pic.twitter.com/35yMQIcMA8
— Lookonchain (@lookonchain) July 1, 2024
ETF exits
On Tuesday (2), Bitcoin ETFs saw outflows of US$13.70 million. While Grayscale (GBTC) and Bitwise (BITB) saw sales of 515.12 BTC and 108.14 BTC respectively, Blackrock (IBIT), Fidelity (FBTC), ARK 21Shares (ARKB) and VanEck (HODL) saw inflows of 405.51 BTC.
Data from ETFs suggests a slight decrease in investor confidence, potentially indicating a temporary drop in the price of Bitcoin. Together, the 11 spot BTC ETFs hold a total of $54.65 billion in Bitcoin reserves.
Miners
Data from CryptoQuant shows that Bitcoin miners intensified their sales at the beginning of the week, transferring 9,096.67 BTC to exchanges on Monday (1), followed by 6,751.91 BTC on Tuesday (2).
Sales may suggest efforts by miners to cover operating costs or take advantage of perceived price appreciation, adding selling pressure to the market.
In any case, they also tend to signal bearish sentiment, potentially foreshadowing a more severe decline in the price of Bitcoin.
On the technical analysis side, Bitcoin price was rejected by daily resistance at $63,956 on Monday (1), falling more than 1% on Tuesday.
The Relative Strength Index (RSI) and the Awesome Oscillator are below their neutral levels. For a bullish return, these indicators need to surpass their neutral levels.
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