As the global crypto market remains vulnerable to further selling pressure, Bitcoin seems to have gotten a stronghold of the $20,000 mark. After a brief slip to $19,000 yesterday, it managed a quick comeback. BTC is facing a tough battle as the bulls and bears battle to assert their supremacy.
QCP Capital, a crypto trading firm, says funding rates on derivatives markets were stable and bearish conditions were fading. There is also a ray of hope as Bitcoin miners capitulate – the recent decline in price has made some mining machines to unprofitable. Moreover, data from Arcane Research highlights that Bitcoin companies dumped 100% of their BTC production in May. They had only sold 30% of their mined production from January to April 2022. Analysts believe miners are giving a bullish signal.
But there’s some hope as Bitcoin hasn’t bottomed out. There will be a bottom when less than 50% of the Bitcoin addresses remain profitable. 56.2% of Bitcoin addresses, as per data from Glassnode, are in profit. At the time of writing this article, Bitcoin was down by 0.74% and was trading at $20,269. Ethereum also managed to stay a little above the crucial $1,000 mark. But it’s down by 1.37% in the last 24 hours as per data from CoinMarketCap.
Edward Moya, the Oanda senior analyst, believes a consolidation could be around the corner as the challenging macro environment is closely being priced in. Alex Kuptsikevich, a senior market analyst at FxPro, pointed out that investors were premature in buying the latest dip. He said wider economic conditions and the US central bank’s monetary policy are not favorable for assets. The analyst highlighted that retail shoppers risk being caught swimming against the financial current.