Despite the massive purchase of over 11,900 Bitcoin by MicroStrategy, the world’s largest cryptocurrency continues to lose steam falling further beneath $65,000 levels. As of press time, the Bitcoin price is trading down 1% at $64,505 with a market cap of $1.271 trillion. Analyst Willy Woo makes a strong analysis of the Bitcoin mining market, and historical trends, to determine when will the BTC price recovery start this year.
When Will the Bitcoin Price Recovery Start?
After facing a strong rejection at $72,000 earlier this month, the BTC price has been heading southwards correcting over 10% from the June high. As Bitcoin loses crucial support levels, the chances of a BTC price drop to $60,000 are growing further.
As per historical trends, the Bitcoin miner capitulation has continued for months after the halving events. Putting his focus on Bitcoin miner capitulation and hash rate recovery, analyst Willy Woo explains that the Bitcoin price recovery hinges majorly on weak miners exiting the market along with the subsequent recovery of the hash rate.
“This one is for the record books as it’s taking a lot of time for miner capitulation post-halving,” Woo noted. Besides, he also attributed some resilience in miner profits to ordinal inscriptions.
I’ll break it down in simple terms.
When does #Bitcoin recover? It’s when weak miners die and hash rate recovers.
This one is for the record books as it’s taking a lot of time for miner capitulation post-halving.
Probably can thank ordinal inscriptions boosting profits. pic.twitter.com/19MB0b8mHO
— Willy Woo (@woonomic) June 20, 2024
Woo compared the current situation with the hash recovery during the previous halving cycles of 2017 and 2020. This typically coincided with the slow summer months when usually the affluent Wall Street investors go on a vacation. As of now, it’s been already 61 days since the Bitcoin halving event 2024.
Bitcoin ETF Sell-Off Continues
On the other hand, the US Bitcoin ETFs witnessed the fifth consecutive day of outflows on Thursday, June 20. Yesterday, the total Bitcoin ETF outflows stood at $140 million with Grayscale’s GBTC reporting a single-day outflow of $53.1 million while the BlackRock Bitcoin ETF IBIT experienced minuscule inflows of just $1.48 million.
🚨 $BTC #ETF Net Inflow June 20, 2024: -$140M!
• The net inflow has been negative for 5 consecutive days.
• Only #BlackRock (IBIT) experienced a small inflow of $1.5M yesterday.
• #Grayscale (GBTC) experienced the highest outflow of the day at $53M. This ETF has suffered a… pic.twitter.com/XC6n5bJl5D
— Spot On Chain (@spotonchain) June 21, 2024
These consecutive Bitcoin ETF outflows show that institutional interest in Bitcoin has been waning a bit amid the Fed’s current stand on holding interest rates higher for a longer-than-expected period. This has also led to the selling pressure on Bitcoin price.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
