Here’s When Bitcoin (BTC) Price Recovery Will Start This Year

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As an experienced financial analyst, I believe that the current downtrend in Bitcoin’s price is not an isolated event and can be attributed to several factors such as miner capitulation, historical trends, and decreasing institutional interest.

As a researcher studying the cryptocurrency market, I’ve observed that despite MicroStrategy’s significant acquisition of over 11,900 Bitcoins, the world’s largest digital currency has continued to weaken, dropping below the $65,000 threshold. At the moment of writing this, Bitcoin is trading down by 1% at $64,505, with a market capitalization of approximately $1.271 trillion. Analyst Willy Woo provides insightful perspectives on the Bitcoin mining sector and historical trends to predict when the BTC price recovery may commence in 2021.

When Will the Bitcoin Price Recovery Start?

Following a significant rejection at the $72,000 mark earlier this month, Bitcoin’s price has been trending downward, dropping around 10% from its June peak. With crucial support levels weakening, the prospect of Bitcoin reaching $60,000 becomes increasingly likely.

Based on historical patterns, I’ve observed that the Bitcoin miner capitulation has persisted for several months following halving events. As a researcher investigating this phenomenon, I’d like to highlight the significance of Bitcoin miner capitulation and hash rate recovery in relation to the price recovery. According to analyst Willy Woo’s perspective, the key factor driving Bitcoin’s price rebound is the departure of weaker miners from the market, which will ultimately lead to a recovery of the hash rate.

Woo remarked that this particular event is exceptional and will be remembered due to the prolonged period miners are taking to yield to the market pressure following the halving. Additionally, he pointed out that miner profits have shown some tenacity, partly due to the value of 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.

— Willy Woo (@woonomic) June 20, 2024

I’ve noticed that Woo drew a parallel between the current scenario and the hash rate recovery following the previous Bitcoin halving cycles in 2017 and 2020. This coincided with the leisurely summer months when wealthy Wall Street investors typically take their vacations. Sixty-one days have already passed since the Bitcoin halving event in 2024.

Bitcoin ETF Sell-Off Continues

Yesterday, there were continuous withdrawals from US Bitcoin exchange-traded funds (ETFs) for the fifth day in a row, with a total outflow of $145.5 million. Grayscale’s GBTC recorded the largest single-day outflow, amounting to $53.1 million, while IBIT from BlackRock experienced only minor inflows of $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…
— Spot On Chain (@spotonchain) June 21, 2024

The successive Bitcoin ETF drain indicates that institutional demand for Bitcoin has softened slightly due to the Federal Reserve’s persistent stance on keeping interest rates elevated for an extended duration. Consequently, this trend has contributed to the downward pressure on Bitcoin’s price.

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2024-06-21 08:04