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Hodler selling and hawkish Fed put pressure on Bitcoin prices

Published 18/06/2024, 13:36
© Reuters.
BTC/USD
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Investing.com -- Bitcoin came under pressure last week, trading as low as $65,000 on Friday, as on-chain metrics showed that Hodlers have been selling Bitcoin since early June, according to H.C. Wainwright.

The bearish trend includes sales from miners, adding to the selling pressure amid a hawkish outlook from the Federal Open Market Committee (FOMC) on Wednesday. "Long-term holder selling may not be catalyzed by a specific event, but their buying and selling activity usually dictates short-term market movements as the wallets of large holders are closely tracked by the Bitcoin community," the report reads.

The spot Bitcoin ETFs had their worst week of outflows since mid-March, with the 11 U.S. ETFs reporting a total net outflow of $580.6 million last week, according to data from Farside Investors.

Last week, Bitcoin declined by 4.3% to finish just above the $66,600 mark, underperforming major equity indices. Meanwhile, mining stocks rallied another 15.7% week-over-week on continued positive sentiment on the political front. 

On June 11, executives from some of the largest Bitcoin mining companies in the U.S. met with Republican Presidential candidate Donald Trump at his Mar-a-Lago resort in Palm Beach, Florida. They discussed how miners can help strengthen the country's energy grid and increase job creation domestically. Trump showed his support in a statement released on Truth Social, his social media app, where he posted, “Bitcoin mining may be our last line of defense against a CBDC (Central Bank Digital Currency)... We want all the remaining Bitcoin to be made in the USA! It will help us be energy dominant!”

Following the recent rally in mining stocks, the combined market cap for the 19 Bitcoin miners in H.C. Wainwright's dataset reached a record high of $26 billion as of June 14. The network hash rate declined by 3.9% week-over-week to 581 EH/s, while network difficulty remained at 83.7T after the latest -0.8% negative adjustment on June 6. 

Moreover, the report highlighted that hash prices fell by 12.4% week-over-week to $0.054/TH/day due to lower Bitcoin prices and transaction fees.

Elsewhere, Texas-based miners have responded positively to the statement. RIOT’s head of public policy, Brian Morgenstern, stated that getting miners on board to help support the grid will create a more flexible power load and help keep the power grids balanced in the state.

 

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