Bitcoin Miners Dump Holdings Amid Persisting Bearish Momentum
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Recent reports from Compass Mining showed that those tasked with sustaining network integrity and validating transactions on the Bitcoin network have begun dumping their mined tokens as the persisting sell-off erodes mining profit margins. This comes as capital markets become less accommodating, with top equity indexes officially entering a bear market.
Compass Mining revealed that a Bitcoin mining service company that got data from CoinMetrics noted that the flow of BTC from miners to exchanges has reached its highest since early 2022. Compass Mining reported:
“Miners may begin to sell HODLed Bitcoin into the open market. At the very least, they are feeling the pain after the last major dip in price. Couple this with a downwards difficulty adjustment – indicating miners powering off – and it seems miners may be hitting a wall in profitability.”
This latest development puts the already embattled Bitcoin in a precarious position. Miners dumping their positions is never a good sign and casts a dark cloud over the crypto market in the coming weeks.
At press time, BTC trades near the $30K mark and is down by 5.5% over the last 24 hours.
Key Bitcoin Levels to Watch — June 2
After topping the $32K mark for the first time since the Terra-induced crash, Bitcoin suffered a sharp correction to the $29.3K low on Wednesday. The benchmark cryptocurrency has since rebounded towards the $30K top as the bearish pressure eases.
Reports show that yesterday’s decline was sponsored by expectations of a more aggressive Fed monetary action in the coming months, which pulled most risk-related assets lower.
That said, I expect a bullish reversal in the near term towards the $31K level. After that, a retest of the $32K mark should follow, which should dictate the price trajectory for BTC in June.
Meanwhile, my resistance levels are at $31,000, $32,000, and $33,000, and my key support levels are at $29,500, $29,000, and $28,000.
Total Market Capitalization: $1.25 trillion
Bitcoin Market Capitalization: $576.2 billion
Bitcoin Dominance: 46.1%
Market Rank: #1
