Markets
What to expect from the Bitcoin and cryptocurrency markets this month
According to analysts, with the official start of summer, Bitcoin could experience a period of stagnation in June. After growth of just over 10% in May, the market is now adapting to new dynamics and potential catalysts.
Bitcoin’s rally in May may be linked to the ETH rally that followed the Securities and Exchange Commission’s (SEC) approval of a rule change allowing Ethereum US ETFs. This resulted in a 20% increase in ETH in two days. With these events behind us, analysts suggest that June may lack immediate stimulus for Bitcoin and the broader cryptocurrency market.
Historical data from CoinGlass shows that June was a volatile month Bitcoin, with an average return of just 0.25% over the past ten years. This average is affected by significant losses in 2022 and 2013.
Yuya Hasegawa, cryptocurrency market analyst at Bitbank, suggests that Bitcoin could continue to trade within a descending channel. He warned that Bitcoin could lose nearly half of its recent gains and fall to around $65,000. Hasegawa also highlights the influence of miners’ behavior on the price of Bitcoin.
As the hashing power of the network decreases and the time to process new blocks increases, the profitability of miners decreases. This could lead to more selling pressure if miners are forced to sell BTC to maintain their cash flow.
Julio Moreno, research director at CryptoQuant, explains the current difficulties of miners with the decline in transaction fees after their halving. He notes that while there is not yet significant selling pressure from miners, the situation remains uncertain.
This month, traders will keep an eye on the Federal Reserve’s June 11-12 policy meeting, especially the consumer price index, which is the Fed’s preferred inflation indicator. These events could impact the Bitcoin price movement.
