The U.S. stock market is strong, why can't Bitcoin rise?
This Wednesday, after the U.S. announced that the CPI in May cooled and interest rates remained unchanged, the three major U.S. stock indexes hit new highs, but the cryptocurrency market fell into a slump.
After Bitcoin and Ethereum briefly surged to $70,000 and $3,657 respectively on the 12th, they have now fallen back to $67,000 and $3,500.
Why are the performances of the two capital markets so different? What went wrong?
I think this is because Bitcoin miners are experiencing "capitulation" after the halving, which directly limits price increases.
Bitcoin miners rely mainly on two sources of income: mining rewards and transaction fees, which must exceed mining costs to be profitable, so miners need to consider the following points to avoid exiting the mining industry:
1. Increased fee income
2. Increased Bitcoin prices
3. Reduced mining costs
The fourth Bitcoin halving halved the block reward for miners from 6.25 BTC to 3.125 BTC.
Although the Bitcoin Runes protocol once allowed miners to earn lucrative fees, as the protocol quickly cooled down, fee income plummeted, resulting in more unprofitable miners and forced withdrawal and surrender.
This week, the amount of Bitcoin transferred by miners to exchanges reached a two-month high, which also verified this.
