Bitcoin’s Price Hovers Just Below $30,000 as Miners Sell Off and Derivative Contracts Expire
Key Points:
– Some miners are selling their bitcoin due to increased mining profit margins.
– Natural market corrections and the expiration of derivative contracts may have contributed to the price dip.
– Bitcoin miner reserves have dropped by around 5,000 coins since June, indicating a transfer to exchanges.
– Miners’ activity suggests de-risking or hedging strategies and institutional interest in bitcoin.
– Bitcoin’s historic correlations with the U.S. Dollar Index and major financial indices are mixed.
Hot Take:
According to economist Youwei Yang, bitcoin’s historic correlations tend to hold true during bull cycles but are less reliable during bear cycles. He believes that a bull market may start in mid-2024, coinciding with the bitcoin halving and potential SEC approval of spot bitcoin ETFs. Yang also suggests that a Federal Reserve rate cut may occur in May 2024, prompting long-term players to hold and accumulate bitcoin.
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