Bitcoin price may drop below $64K as veteran raises ‘campaign selling’ alarm

Bitcoin's price faces potential downward pressure, with some market veterans warning that it may fall below the $64,000 mark. The recent market dynamics suggest that both cryptocurrency miners and U.S.-based spot Exchange-Traded Funds (ETFs) are reducing their Bitcoin holdings, which could exacerbate the existing supply challenges in the market.

As Bitcoin continues its fragile downtrend, analysts are paying close attention to the activities of miners. These entities, which play a crucial role in the Bitcoin ecosystem by validating transactions and securing the network, appear to be selling significant portions of their mined coins. This behavior is often referred to as "campaign selling," which can lead to an increase in supply flooding the market, thereby putting further downward pressure on prices.

In addition to miners, U.S. spot ETFs, which have gained popularity as a method for institutional investors to gain exposure to Bitcoin, are also reportedly trimming their Bitcoin positions. This reduction in holdings from both miners and ETFs could signal a lack of confidence in the current market trajectory, leading to an overall bearish sentiment among investors.

The combination of these factors has raised concerns among analysts that Bitcoin could see a deeper decline as market participants react to the changing landscape. The selling activities from miners and the strategic decisions made by ETF managers may create a scenario where Bitcoin's price falls below critical support levels, potentially impacting retail investors and the broader cryptocurrency market.

Market watchers are advised to keep a close eye on these developments, as they could significantly influence Bitcoin's price in the coming weeks. The interplay between supply and demand remains a fundamental aspect of Bitcoin's price movement, and any substantial increase in selling pressure could lead to heightened volatility.

Key Takeaways

Bitcoin's price may drop below $64,000 due to increased selling pressure from miners and U.S. spot ETFs.
"Campaign selling" by miners is contributing to a rise in market supply, which could exacerbate the current downtrend.
Reduced holdings by institutional investors signal potential bearish sentiment in the cryptocurrency market.
Analysts recommend monitoring these factors closely as they could significantly impact Bitcoin's price trajectory.

This article was inspired by reporting from CoinTelegraph. · Report an issue