Bitcoin sees a 4.3% weekly decline amid miner sell-offs and ETF outflows

Bitcoin (BTC) ended the week at approximately $66,675, marking a 4.3% decrease from the previous week’s closing price of around $69,650.

This downturn was characterized by stronger selling pressure than buying demand, with BTC consistently dropping on Tuesday and gradually declining further throughout the week, stabilizing over the weekend in the $66,000 to $67,000 range.

End of four-week inflow streak

BTC Spot ETFs witnessed net outflows last week, breaking a streak of four weeks and 19 trading days of consecutive inflows.

The cumulative outflow for the week was about $580 million, reducing the total net inflow since inception to $15.1 billion.

This shift indicates a change in investor sentiment and could be a response to the broader market conditions affecting Bitcoin.

Halving event and increased sell-off

The recent price drop was also influenced by high selling volumes from miners. Mining activity has been impacted by the recent Bitcoin halving, which reduced block rewards from 6.25 to 3.125 BTC.

Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International, says,

This event forces miners to optimise their capital efficiency to maintain profitability, initially causing a significant decrease in profitability as rewards are halved from one block to the next.

The Bitcoin network’s hashrate has sharply increased over the past few years and has only decreased by 4% following the halving.

This indicates strong competition in the mining sector, with businesses forced to find various revenue streams to stay profitable and optimize capital efficiency.

During this market phase, miners tend to sell more heavily due to the halved rewards. High prices encourage this sell-off, allowing miners to bolster their cash reserves and better prepare for potential future bear markets.

Growing adoption in Australia

Meanwhile, BTC Spot ETFs continue to grow in Australia. Following Monochrome’s launch on Cboe Australia, VanEck has obtained approval to list a BTC Spot ETF on the Australian Securities Exchange (ASX), one of the country’s most important exchanges.

The product is set to launch on Thursday the 20th, confirming the increasing worldwide adoption of BTC as an asset class among traditional finance investors.

Ethereum Spot ETFs on the horizon

As for Ethereum (ETH) Spot ETFs, their launch in the US is expected in a few weeks.

Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), has confirmed that he anticipates ETH Spot ETFs to start trading during the summer.

Some analysts expect this to happen as soon as the first week of July, with conversations between the SEC and issuers in their final stages.

BlackRock’s Solana ETF rumours

The launch of ETH Spot ETFs may pave the way for issuers to file for several other digital asset ETFs. Recently, rumors have been circulating about BlackRock soon filing for a Solana ETF.

This suggests that the approval of ETH Spot ETFs could facilitate the filing and approval of other major digital assets that use Proof-of-Stake (PoS) as their consensus mechanism.

Broader market implications

The recent developments in Bitcoin’s market, including the miner sell-offs and ETF outflows, highlight the dynamic nature of the cryptocurrency landscape.

As traditional financial instruments like ETFs continue to gain traction, the interplay between regulatory decisions, market sentiment, and technological advancements will shape the future of digital assets.

For investors and market participants, staying informed about these developments is crucial. The ongoing expansion of BTC Spot ETFs in markets like Australia and the anticipated launch of ETH Spot ETFs in the US underscore the growing acceptance and integration of cryptocurrencies into mainstream finance.

However, the volatility and external factors influencing these markets mean that cautious and well-informed investment strategies remain essential.

Bitcoin’s recent price decline, driven by miner sell-offs and ETF outflows, reflects the complex and evolving nature of the cryptocurrency market.

The developments in BTC and ETH Spot ETFs, along with the broader implications for digital assets, illustrate the increasing integration of cryptocurrencies into traditional finance.

As the market continues to evolve, staying informed about regulatory changes, technological advancements, and market trends will be key for investors navigating this dynamic landscape.

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