• The traders expect bitcoin (BTC), despite the strong stock market and the favorable crypto policies in the United States, to drop further over coming weeks. They attribute this to miners selling their coins and profit-taking.
  • Bitcoin’s potential is limited by the cash demand of miners, as evidenced by on-chain data. This shows an increase in BTC transfers from mining pools to exchanges.
  • It is common to interpret the movement of money into an exchange as an indication of a sale.

Due to profit-taking by miners, traders expect a further bitcoin (BTC), price correction over the next few weeks. This is despite a healthy equity market in the United States and favorable crypto policies.

The dollar is strengthening and there’s an increase in demand for stocks. In an email sent to CoinDesk on Friday, Alex Kuptsikevich shared that the demand for risk assets is slowly declining, creating a series of decreasing intraday highs.

Bitcoin continues to test its 50-day moving average, but doesn’t see a reason to plunge lower. “This persistent testing of lows will set the bears on a fast track to success, with their next goal at $60,000,” added he.

Observers said that miners or entities who provide extensive computing resources for the Bitcoin network to run may be selling groups.

In an email, analysts at the Japanese crypto exchange bitBank shared that “Bitcoin’s upper potential could be limited due to miner’s cash demand.” Since May, bitcoin miner’s net position (BTC inflow/BTC outflow) has been steadily declining. This suggests that their operation is becoming tighter after the Bitcoin network was halved in April.

The increasing net BTC withdrawals by miners does not put pressure on bitcoin’s price. Analysts added that prices “tend to stagnate”.

CryptoQuant’s report on Wednesday showed that the amount of BTC being transferred from mining pools to exchanges had increased. This transfer reached a record high in two months, which was achieved on June 9. The firm also reported that the daily volume of sales via professional over the counter desks had risen to its highest level since late March.

Bitcoin rose from $68,000 up to $70,000 as the May CPI in the U.S. came out lower than expected. The price of bitcoin quickly reversed its gains on Thursday, after the Federal Open Market Committee reduced their forecasts for rate cuts this year.

Since Monday, major tokens like BNB Chain’s BNB and XRP, as well as Solana SOL, have fallen more than 10%, while meme coins, such as dogecoin and shiba Inu, have dropped 15%.

These moves were made in response to the continued outflows of U.S. listed spot BTC exchange traded funds (ETFs) , which have seen a total $500 million leave since Monday. This is their worst week since April, when they lost $1.2bn in six days.

Bitcoin has decoupled with the technology index Nasdaq. This index is dominated by technology stocks.

Some market analysts said that short-term, ether is “looking worse” than Bitcoin.

Rachel Lin, CEO of SynFutures and co-founder, stated in a Telegram Message that “Looking at technicals, both Bitcoin, and Ethereum, look bearish. However, ETH looks worse, than BTC.” We might see further downside if ETH doesn’t reclaim the $3,700 mark soon.

Lin stated that $67,000 is the critical level for BTC. She added that the outlook on the long term remains positive.

Omkar Godbole is the editor.