BTC bounces back as miners batten down the hatches

By Raffaele Redi
• Updated

Analysts suggest BTC price still has to weather upcoming headwinds expected from the Fed

Bitcoin (BTC) broke its losing streak on Monday 6 June as it rose by 2.5% to the $31,300 mark compared with the past seven days of trading, according to CoinMarketCap.

The uplift has come as one analyst suggested that the crypto market is witnessing the biggest BTC sell-off since 2020 because bitcoin miners are liquidating their holdings in the wake of the terraUSD (UST) depegging.

Lark Davis, a bitcoin and crypto investor, tweeted today: “Ever since the recent crash began miners have been selling their bitcoin. This is the biggest sell-off in two years.”

June may be crucial month for BTC

The apparent sell-off comes just a few days before the US central bank, the Federal Reserve, holds its next Federal Open Market Committee meeting on 14 June to decide on future US interest rates. 

What is your sentiment on BTC/USD?

24829.45
Bullish
or
Bearish
Vote to see community's results!

Some are predicting that further hawkish decisions by the Fed could represent a significant headwind for bitcoin in the coming days. 

Mike McGlone, senior commodity strategist for Bloomberg Intelligence, tweeted: “An emboldened Federal Reserve fighting inflation, despite an almost 30% drawdown in the Nasdaq 100 Stock Index, is a primary headwind for bitcoin and the crypto market at the start of June.”

All prices are correct as of 13:00 BST (UTC +1).

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image