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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 their institutional counterparts, the market is facing a mix of Bullish signs and potential headwinds.
Individual Investors Return to Bitcoin
at recent days Posted on social mediaCryptocurrency analyst Ali Martinez highlighted the recovery of retail investors, as evidenced by the number of new BTC addresses rising to a four-month high of 432,026, adding to the sentiment that investors are betting on a significant increase in BTC prices in the coming months, despite recent price volatility.
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In separate mail In his analysis of Bitcoin’s recent price action, Martinez also suggested that the largest cryptocurrency in the market is currently trapped within a parallel channel, with a potential recovery to $63,200 or $63,800 if the lower bound at $62,500 holds.
In particular, Martinez He is martyred Critical resistance areas at $65,795 and $78,700 are seen as major targets if Bitcoin price breaks above them.
However, not all the news is positive for the Bitcoin market. In the past 72 hours, Bitcoin miners have Over 2300 BTC sold It is worth about $145 million. This selling pressure is in addition to the ongoing sales of confiscated bitcoins by the US and German governments.
Mining industry under pressure
The mining industry is facing challenges due to lower network fees and lower block rewards resulting from the Halving event in April.
Kaiko Research Notes The average network fee dropped from $3 to $5, a significant drop from around $45 in January. The halving saw block rewards drop from 6.25 BTC to 3.125 BTC, impacting miners’ revenue.
This decline in revenue has put pressure on mining companies, eroding profitability while fixed expenses such as energy, wages and rents have remained flat. Lower network fees have also contributed to the decline in revenue.
Historically, Bitcoin price spikes following halving events have helped miners offset the drop in rewards. However, the Bitcoin price has remained relatively unchanged since April 19. system update.
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In April, fees briefly rose to nearly $150 due to increased minting. Non-Fungible Tokens (NFTs) on the BTC blockchain. While this temporarily eased the burden on miners, fees have since returned to average levels.
According to Bloomberg, Marathon Digital, one of the largest Bitcoin mining companies, sold 390 Bitcoin last May, and plans to sell more tokens to manage its finances.
Kaiko Research warns that the risk of forced sales by mining companies could persist in the coming months. As a result, the industry is expected to see consolidation as mining companies seek to “consolidate assets” and “increase efficiency.”
Notable examples include mining company Riot Blockchain’s “hostile takeover attempt” of Bitfarms Ltd. and CleanSpark Inc.’s recent agreement to acquire Griid Infrastructure Inc. for $155 million in full stock deal.
At the time of writing, Bitcoin Bitcoin price is still consolidating within its range at $61,880, down 2% in the 24-hour time frame, erasing all gains in the past 30 days, as losses in this time frame amounted to 9%.
Featured image by DALL-E, chart by TradingView.com
