FOMC

Bitcoin

Just before the much-awaited FOMC meeting, Bitcoin came under significant selling pressure with on-chain indicators showing that miners have been selling off their holdings aggressively. As of press time, the <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener">Bitcoin (BTC) price</a> is trading 1.5% down at $67,400 levels with a market cap of $1.328 trillion. 
<h3 id="bitcoin-miner-capitulation-rises">Bitcoin Miner Capitulation Rises</h3> 
CryptoQuant Head of Research Julio Moreno has reported significant signs of <a href="https://coingape.com/bitcoin-miners-offload-reserves-amid-massive-crypto-liquidations/" target="_blank" rel="noopener">Bitcoin miner capitulation</a>. On Monday, miners sold 1,200 Bitcoin, marking the largest daily miner selling volume since late March. 
These transactions were conducted over-the-counter (OTC), not on exchanges, indicating that miners are opting for large, discreet trades that do not immediately impact market prices. This month, Bitcoin OTC desk balances for miners have surged by 54,000 BTC, reaching a year-high. 
<figure id="attachment_201839" aria-describedby="caption-attachment-201839" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-201839" src="https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation.jpeg" alt="" width="4000" height="2250" srcset="https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation.jpeg 4000w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation-300x169.jpeg 300w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation-1224x689.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation-768x432.jpeg 768w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation-1536x864.jpeg 1536w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation-2048x1152.jpeg 2048w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation-678x381.jpeg 678w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Miner-Capitulation-150x84.jpeg 150w" sizes="(max-width: 4000px) 100vw, 4000px">
 <figcaption id="caption-attachment-201839" class="wp-caption-text">
 Courtesy: <a rel="nofollow" href="https://x.com/jjcmoreno/status/1800540819533037827" target="_blank">CryptoQuant</a>
 </figcaption>
</figure> 
The increase in Bitcoin transfers to OTC desks suggests that miners may be preparing to sell more Bitcoin, possibly due to concerns over potential price drops or an immediate need for cash. Following the recent halving, many mining companies and individual miners have indicated that they cannot maintain profitable operations, leading to a potential exodus from the industry. 
<h3 id="btc-price-drop-to-62-500">BTC Price Drop to $62,500?</h3> 
Bitcoin analyst Willy Woo has indicated that recent liquidations may trigger further downward momentum for Bitcoin prices. Woo suggests that if the next wave of long liquidations continues to fuel this trend, Bitcoin could drop to $62,500 to clear out the remaining speculative positions. 
<figure id="attachment_201844" aria-describedby="caption-attachment-201844" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-201844" src="https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Liquidation-Heatmap.jpeg" alt="" width="1352" height="940" srcset="https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Liquidation-Heatmap.jpeg 1352w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Liquidation-Heatmap-300x209.jpeg 300w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Liquidation-Heatmap-1224x851.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Liquidation-Heatmap-768x534.jpeg 768w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-Liquidation-Heatmap-150x104.jpeg 150w" sizes="(max-width: 1352px) 100vw, 1352px">
 <figcaption id="caption-attachment-201844" class="wp-caption-text">
 Courtesy: Will Woo
 </figcaption>
</figure> 
Woo emphasized the necessity of purging the “degen” open interest in futures bets, stating that these liquidations must occur before any significant upward movement can resume. 
According to The Scalping Pro, Bitcoin has faced yet another rejection from its range high. The cryptocurrency has been oscillating between $60,500 and $71,500 since March, marking the fourth rejection from the upper limit of this range. 
The analyst highlights that the next critical support level lies near the mid-range at $65,000, which is essential for Bitcoin to maintain to avoid further declines. 
<img decoding="async" class="aligncenter size-full wp-image-201845" src="https://coingape.com/wp-content/uploads/2024/06/Bitcoin-BTC-Price-Chart.png" alt="" width="1136" height="831" srcset="https://coingape.com/wp-content/uploads/2024/06/Bitcoin-BTC-Price-Chart.png 1136w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-BTC-Price-Chart-300x219.png 300w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-BTC-Price-Chart-768x562.png 768w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-BTC-Price-Chart-80x60.png 80w, https://coingape.com/wp-content/uploads/2024/06/Bitcoin-BTC-Price-Chart-150x110.png 150w" sizes="(max-width: 1136px) 100vw, 1136px"> 
The post <a href="https://coingape.com/bitcoin-miner-capitulation-can-extend-btc-price-drop-to-62500/">Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Bitcoin Miner Capitulation Can Extend BTC Price Drop to $62,500

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