Bitcoin (BTC) remains under pressure as markets open this week, with Bitcoin price trading above $66,000. In this article, follow the spotlight and explore events BTC traders should keep watching this week.
The Bitcoin price action is surprisingly muted at press time. After a “packed” week, traders expected prices to fly.
Indeed, last week, the crypto and Bitcoin community expected the United States Federal Reserve to be more dovish than it turned out to be.
The central bank said it would slash interest rates only once this year, even with falling inflation moving closer to its benchmark of 2%.
Markets interpreted this as hawkish, lifting the USD.
Even with Bitcoin moving sideways above the $66,000 support line, the coin remains in an uptrend, adding 60% year-to-date.
(BTCUSDT)
Key drivers include the general expectation of the United States Federal Reserve slashing interest rates after rapidly hiking them throughout 2021 and early 2022. Another driver included the approval of spot Bitcoin ETFs in January.
Through this product, institutions can now get exposure, explaining the surging demand for BTC.
The question is: Will spot ETFs fuel the uptrend and momentum resume this week?
All Eyes On Spot Bitcoin ETF Inflow
While Bernstein analysts acknowledge the importance of spot Bitcoin ETFs, it is obvious that demand has been tapering over the last few months.
After racking over $15 billion in a record six months, this slowdown was mostly expected.
Even so, analysts expect inflow to pick up as spot ETF issuers control more BTC in circulation.
According to Bernstein, spot ETF issuers like Fidelity and BlackRock will soon control as much as 7% of all BTC in circulation by 2025. In their estimation, this number will shoot to as high as 15% by 2033.
As institutions pour in, they also expect Bitcoin prices to roar, predicting the coin to reach $200,000 by mid-2025.
Miners Will Continue Playing A Key Role
Beyond ETFs, the trading community will be closely monitoring miner activity this week.
By last week, the average BTC mining cost was just over $86,000. If the uptrend is to resume, then prices must spike above this line, meaning miners are profitable.
#Bitcoin's average mining cost is currently at $86,668.
And guess what? Historically, $BTC always surges above its average mining cost! pic.twitter.com/S3UkwgvS3N
— Ali (@ali_charts) June 15, 2024
Analysts think BTC is grossly undervalued at spot rates and consider it an opportunity to double down. Historically, when mining costs are higher than spot rates, prices tend to recover sharply in the sessions ahead.
Whether BTC prices will shoot higher remains to be seen. However, what’s clear is that after the April 20 Halving, miners have been under pressure.
Most have been selling to keep operations going.
#Bitcoin undergoing a rare miner capitulation. This one is from the halvening event, culling weak miners. As they die, they dump BTC, price rebounds afterwards.
But first we need to purge the degen open interest in futures bets. Liquidations need to happen before a pump. pic.twitter.com/xsSdg5QMsP
— Willy Woo (@woonomic) June 10, 2024
If this trend continues this week, BTC will likely dump below $66,000 until miners’ reserves have been depleted – at which point, theoretically, the Halving supply shock will finally bite.
DISCOVER: How to Buy Spot Bitcoin ETF in June 2024
The Bottom Line: Key Fundamental Events To Watch This Week
Analysts expect market volatility this Friday as billions of stock options, index futures, and index options expire.
Considering the increasing correlation between stocks and Bitcoin, it is not unlikely that this big market event could see Bitcoin price also move.
Eyes will also be on the United States retail sales on Tuesday and industrial production on Friday. If they rise or shrink, exceeding or falling below economists’ expectations, Bitcoin might be impacted.
EXPLORE: What are Bitcoin ETFs? A Beginner’s Guide
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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