This significant sell-off has depleted miner reserves to 1.9M BTC, a level not seen in 14 years.
The revenue of Bitcoin miners was heavily impacted by the fourth halving event in April 2024.
In June, Bitcoin miners sold over $2 billion worth of cryptocurrency, equivalent to more than 30,000 BTC. This marks the largest monthly sell-off so far this year. As miners started selling off their holdings to stay afloat post the latest Bitcoin Halving, their reserves dropped to 1.9 million BTC, a level not seen in 14 years.
The revenue of Bitcoin miners took a hit due to the fourth halving event in April 2024, reducing block rewards from 6.25 BTC to 3.125 BTC. Consequently, many businesses, especially those with limited assets, had to sell off their holdings to cover operational costs.
The breakeven point for miners stands at the $80,000 mark, which is currently higher than the price of Bitcoin. This trend is highlighted by recent significant sales of Bitcoin by large holders, who offloaded over $4 billion worth of the cryptocurrency.
Moreover, the German government recently sold $3 billion worth of Bitcoin, as the price of Bitcoin dipped below $61,000, causing market volatility to soar.
Expert Predicts Market Recovery
The market experienced further turmoil after Mt. Gox announced plans to repay creditors around $9 billion in Bitcoin and Bitcoin Cash (BCH), potentially contributing to the decline. However, according to crypto expert Ali Martinez, there could be a rebound based on historical patterns.
Martinez noted that the Bitcoin daily RSI has entered oversold territory three times in the past two years, resulting in price increases of 60%, 63%, and 198%, respectively. This could signal a buying opportunity now that the relative strength index (RSI) has returned to oversold levels and Bitcoin’s price has significantly dropped.
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