Bitcoin (BTC) has been lingering around the $62,000 price mark for an extended period. Nevertheless, there is a possibility of the situation worsening for the leading cryptocurrency in the near future.
Heat-stricken miners
Recent research shows that there are unmistakable signs that the typical Bitcoin miner is having difficulty after the halving.
The most difficult circumstances miners have faced since March 2020, during the COVID-19 meltdown, are now upon them due to a large decline in revenue since the halving.
The network has experienced its fourth negative difficulty adjustment of the year as a result of this pressure, which is visible in the dropping hashrate.
With a current adjustment of -5.6%, this is the biggest negative change since November 2022, when the FTX collapsed.
Miners that want to be profitable will have to liquidate their Bitcoin holdings if circumstances go worse.
Increasing inflows
Things appeared better for Bitcoin on Wall Street, despite the fact that the situation of miners makes the state of BTC seem grave.
According to recent data, US Spot Bitcoin ETFs saw a net influx of $11.78 billion overall, including a $12 million daily net inflow on May 8.
Bitwise’s BITB was the only ETF among them to have a net inflow during the same period; in contrast, neither Blackrock’s IBIT nor Grayscale’s GBTC experienced any net inflows.
Furthermore, on May 8, the Grayscale Bitcoin Trust ETF (GBTC) showed a $17.5 billion net outflow throughout the course of the previous trading day.
Since their inception on April 30, HK Spot Bitcoin ETFs have received a total net inflow of $273.6 million in Asia, according to the most recent figures. On May 8, a net inflow of $6.3 million was reported every day.
Conversely, since its inception on April 30, HK Spot Ether ETFs had seen a cumulative net inflow of $50.6 million; but, as of May 8, they had a daily net outflow of $1.9 million.
As of the time of writing, the price of Bitcoin was $62,945.16, up 3.40% from the previous day. The price explosion for Bitcoin had caused the MVRV ratio to increase.
As most BTC addresses became profitable, the incentive for holders to engage in profit-taking also rose alongside increasing profitability.
May 2024, Cryptoniteuae
