The cryptocurrency market saw a downward trend in June, with Bitcoin falling to the $62,300 band to start the new week. One of the reasons for this recent selling pressure is attributed to Bitcoin sales by crypto mining companies whose revenues have plummeted. After the reward halving that took place on the Bitcoin network in April, cryptocurrency miners saw their income reduced by half. This led to many miners stopping their activities, causing a sharp decrease in the Bitcoin difficulty rate.
Reports show that mining companies have sold more than $2 billion worth of Bitcoin this month to cover their costs until the balance was re-established. Due to the impact of the halving, mining revenues decreased significantly, from an average of $107 million per day before the reward halving to $30 million. This has forced many small and medium-sized miners who had difficulty continuing their activities to stop their operations.
Despite the downward trend in Bitcoin price due to increased selling pressure, one of the factors supporting the market was ETF purchases. The cryptocurrency backed by Bitcoin ETFs reached new record highs this year, rising to $73,000. However, the subsequent selling pressure halted Bitcoin’s progress. Some experts believe that the selling pressure may decrease after new balances are established in the mining industry, but for now, the downward trend in Bitcoin continues to impact ETFs.
As Bitcoin lost the $65,000 level, an outflow of approximately $200 million was recorded from ETFs. The market remains uncertain as mining companies continue to sell off Bitcoin to cover their costs, while ETF purchases provide some support to the price. It will be interesting to see how the balance between mining sales and ETF purchases plays out in the coming months, and how it will impact the overall cryptocurrency market.
The cryptocurrency market is currently facing challenges due to the ongoing selling pressure from mining companies and the impact it has on Bitcoin prices and ETFs. Investors should closely monitor these developments to make informed decisions about their investments in the volatile market.