Bitcoin recovers slightly; hash rate drop indicates possible miner
capitulation
After a negative day for the crypto sector, Bitcoin
(COIN:BTCUSD) recovered by 0.60% on Friday morning, priced at
$67,122.71 in the last 24 hours.
Regarding the recent dynamics in the Bitcoin mining market, the
hash rate has dropped to around 600 exahashes per second,
suggesting a possible capitulation period for some miners after 18
months of steady growth. This decline in mining activity, which
reflects a lower difficulty in mining Bitcoin, may indicate that
mining companies are beginning to sell their BTC reserves, although
capitulation is not entirely confirmed by the selling
movements.
The “Miner Net Position Change” indicator, which tracks the net
balance of Bitcoin miners, provides insights into their market
expectations. When the balance is positive, it usually indicates
that miners are holding Bitcoin, likely because they expect the
price to increase. Conversely, a negative balance suggests they are
selling, perhaps to cover operational costs or because they foresee
a price drop.
Fernando Pereira, an analyst at Bitget, reinforces the
observation that although there are signs of selling, the situation
is not alarming but requires vigilance to understand if this trend
will persist and potentially signal more significant market
changes. “The indicator shows a distribution from miners that is
not one of the largest recently, but it deserves attention if it
prolongs or increases in volume. However, this is not an effective
reversal signal, especially when compared to the last cycle, where
miners were buying at the all-time high and selling at the all-time
low,” said Pereira.
In other related news, a new report from Greenpeace USA
criticizes large financial institutions on Wall Street for
financing the Bitcoin mining industry, which generates high carbon
emissions. Greenpeace calls for more transparency and
responsibility regarding the climate impacts of these investments.
The report highlights names like BlackRock (NYSE:BLK) and Vanguard
as major financiers of this activity, pointing them out as
responsible for enormous amounts of CO2.
Bernstein predicts Bitcoin to reach $1 million by 2033
Bernstein has started covering MicroStrategy (NASDAQ:MSTR),
highlighting its optimistic projections for Bitcoin (COIN:BTCUSD),
noting that it could reach $1 million by 2033 and $200,000 by 2025.
MicroStrategy, the largest corporate holder of Bitcoin, owns 1.1%
of the global supply of the cryptocurrency. The company,
transformed in four years, is seen as an active model of Bitcoin
accumulation compared to passive ETFs.
Sharp drop in Bitcoin ETFs after day of gains
On June 13, US spot Bitcoin ETFs experienced a sharp reduction
in their positions after a day of significant gains. Recent data
indicates withdrawals worth $226.2 million, a stark contrast to the
$100.8 million inflows the previous day. Fidelity’s ETF (AMEX:FBTC)
led the outflows with $106.4 million. Only BlackRock’s ETF
(NASDAQ:IBIT) showed new inflows, standing out in the prevailing
trend of outflows.
Analyst explains slowdown in Bitcoin adoption
Jurrien Timmer of Fidelity Investments analyzed the recent
slowdown in Bitcoin adoption, despite considering it “exponential
gold.” He notes that the growth of the Bitcoin network has not kept
pace with its price gains, creating a significant divergence.
Timmer attributes this dynamic to growth influenced by the coin’s
scarcity, monetary and fiscal policies, and market sentiment. This
divergence may be the key to understanding why Bitcoin has not
reached new all-time highs recently.
Bitfarms expands operations in Pennsylvania as Riot intensifies
acquisition attempt
Bitfarms (NASDAQ:BITF), a leading Bitcoin mining company,
announced the expansion of its operations to Sharon, Pennsylvania.
The new site will allow the development of up to 120 megawatts of
energy capacity. This expansion, located at the PJM
interconnection, will provide Bitfarms with access to competitive
electricity rates, strengthening its market position and increasing
its geographical diversification as the company aims for an
operational capacity of 8 EH/s by 2025.
Additionally, Riot Platforms (NASDAQ:RIOT) acquired an
additional 1,432,063 shares of Bitfarms at $2.70 each, totaling
approximately $3.87 million. With this purchase, Riot now holds
about 14% of Bitfarms’ shares, part of its hostile takeover attempt
of the company. Recently, Bitfarms implemented a “poison pill” to
protect itself, responding to Riot’s aggressive approach, which
criticized this defensive strategy.
Massive exploit on Holograph results in 7-million-dollar token loss
Holograph, an advanced platform for token transfers between
different blockchains, was targeted…
Read More: Miners’ Selling Trends, Bernstein’s Stellar Bitcoin Price Projections, and More