Since early February, Bitcoin miners have sold $1.4 billion worth of BTC, marking the fastest sell-off in over a year and the lowest point in 2021. This significant sell-off has caused shockwaves in the market and raised concerns about the short-term price trend of the leading cryptocurrency.
Several factors have contributed to this capital outflow, including the recent halving event and a significant decrease in profitability. The increased costs after the halving have forced miners to sell off their holdings.
Despite some positive news, such as Microstrategy’s recent purchase of nearly 12,000 BTC and bullish forecasts from Arthur Hayes and Michael Dell, the price trend of Bitcoin remains weak, with a trading price of $63,600 at the time of writing.
Therefore, it can be expected that the price of Bitcoin will rebound in the near future. The reduction of miner reserves by 50,000 BTC since the beginning of the year reflects financial difficulties. The recent actions by the German government, selling around 3,000 BTC, have further intensified market pressure, with reportedly 47,000 BTC still awaiting sale.
Market speculation indicates that the price of Bitcoin may be limited in the short term, but a bullish trend is expected to emerge by the end of the year. The significant sell-off of bullish options expiring within a month and aggressive buying activities from September to December suggest that a consolidation phase is expected in the summer, followed by a bullish rebound.