Bitcoin
Top Reason Why Bitcoin (BTC) Is Struggling Right Now on U.Today
U.Today – The state of the post-FOMC market reveals the current struggle of miners, who are massively capitulating and closing their positions. Such a trend could become shock therapy for the market, highlighting underlying issues that are affecting Bitcoin’s recovery.
Despite shares showing strong momentum, BTC is failing to muster any upward momentum. The main reason for the divergence can be attributed to the post-halving capitulation by BTC miners which, in essence, is capping the price at this level. Increasing trading costs and reducing reward structures result in massive selling by BTC miners, exerting downward pressure and not allowing BTC to achieve good signals in the broader financial markets.
The situation is made even worse by the fact that Flowbank, a bank that has a tripartite agreement with Binance, is in bankruptcy. Overall, this development further complicates the dynamics of the Bitcoin market.
We are basically about to have a quiet summer, with no clear catalyst to push the market in either direction and an environment of lower volatility. The SEC’s Gary Gensler hinted that a spot ETH ETF could be approved in late summer, but that would not be an immediate catalyst for BTC. The market is just on hold, waiting for significant news or events to guide it.
This makes it a strategic window for ETH or ETH traders. With ETH volatility at a 10 vol premium to BTC and the spread likely to narrow as ETH overwriters return and in anticipation of ETH spot ETF approval, this quiet summer could be a good time to get involved in trading of ETH accumulation and a strategic redistribution of risks, to avoid complications in periods of high volatility.