Bullish Reversal For Bitcoin? Retail Investors Flood Back As New Addresses Reach 4-Month Peak
02 Juillet 2024 - 11:30PM
NEWSBTC
Recently, the price of Bitcoin (BTC) has entered a consolidation
phase, fluctuating between $61,000 and $62,000 after a brief drop
to $58,000 on June 24. While retail investors have shown renewed
interest alongside institutional counterparts, the market faces a
mix of bullish signs and potential headwinds. Retail Investors
Return To Bitcoin In a recent social media post, crypto
analyst Ali Martinez highlights the resurgence of retail investors,
as evidenced by a four-month high in new BTC addresses reaching
432,026, adding to the sentiment that investors are betting on a
significant price increase for BTC in the coming months, despite
recent price volatility. Related Reading: Ethereum Suffers
3rd Straight Weekly Outflows, Becomes 2024’s Worst Performer In a
separate post analyzing BTC’s recent price action, Martinez also
suggested that the largest cryptocurrency on the market is
currently confined within a parallel channel, with a potential
rebound to $63,200 or $63,800 if the lower bound at $62,500
holds. In particular, Martinez cites the critical resistance
areas of $65,795 and $78,700 as key targets if BTC breaks above
them. However, not all news is positive for the Bitcoin market. In
the past 72 hours, BTC miners have sold over 2,300 BTC worth
approximately $145 million. This selling pressure adds to the US
and German governments’ ongoing sell-off of confiscated BTC. Mining
Industry Under Pressure The mining industry faces challenges
due to lower network fees and reduced block rewards resulting from
the Halving event in April. Kaiko Research notes that average
network fees have decreased from $3 to $5, a significant drop from
around $45 in January. The halving saw block rewards reduce from
6.25 BTC to 3.125 BTC, impacting miner revenue. This revenue
squeeze has put pressure on miners, eroding profitability while
fixed expenses such as energy, wages, and rent remain constant. The
decline in network fees has further contributed to the reduction in
revenue. Historically, Bitcoin price rallies following
Halving events have helped miners compensate for the drop in
rewards. However, the price of Bitcoin has remained relatively
unchanged since the April 19 software update. Related Reading: 36%
Explosion! ENS Coin Steals The Spotlight In The Crypto Market In
April, fees briefly surged to nearly $150 due to the increased
minting of non-fungible tokens (NFTs) on the BTC blockchain.
Although this temporarily relieved miners, fees have since returned
to average levels. According to Bloomberg, Marathon Digital,
one of the largest Bitcoin miners, sold 390 BTC in May and plans to
sell more tokens to manage its finances. Kaiko Research warns that
the risk of forced selling by miners may persist in the coming
months. As a result, the industry is expected to witness
consolidation as miners seek to “consolidate assets” and “increase
efficiency.” Notable examples include miner Riot Blockchain’s
“hostile takeover attempt” of Bitfarms Ltd. and CleanSpark Inc.’s
recent agreement to acquire Griid Infrastructure Inc. for $155
million in an all-stock transaction. At the time of writing, BTC is
still consolidating within its range at $61,880, down 2% in the
24-hour time frame, wiping out all gains in the past 30 days, as
losses in this time frame amount to 9%. Featured image from
DALL-E, chart from TradingView.com
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