As Bitcoin rebounds to $66k, short-term holders sell at ‘basically zero profit’

Key Takeaway:

Bitcoin’s growth is showing signs of sustainability, with short-term holders selling at minimal profit and stablecoin liquidity slowing down. Miner profitability remains a concern, and the recent halving may put pressure on miners to sell if prices do not recover quickly.

Bitcoin’s Sustainability in Question

Despite interest from large investors, the rally in Bitcoin has yet to accelerate enough to ensure its sustainability, according to analysts at CryptoQuant. Short-term holders are selling at minimal profit, leading to unrealized losses and potential price bottoms. While OTC desk balances have stabilized, stablecoin liquidity growth is slowing down, affecting market liquidity.

Miner Profitability and Halving Implications

CryptoQuant highlights the underpayment of Bitcoin miners, with profitability at its lowest since March 2020. The recent halving could further strain miners as daily network fees decrease, impacting their ability to hold onto crypto holdings. Analysts at Kaiko warn of potential selling pressure from miners if prices do not recover swiftly post-halving.

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