Navigating the Bitcoin Price Resurgence

Despite the significant purchase of over 11,900 Bitcoin by MicroStrategy, the world's largest cryptocurrency, Bitcoin (BTC), continues to lose momentum, falling below the $65,000 mark. As of the latest update, the Bitcoin price is trading 1% lower at $64,505, with a market capitalization of $1.271 trillion.

Analyst Willy Woo has conducted a thorough analysis of the Bitcoin mining market and historical trends to determine when the BTC price recovery will commence this year.

Miner Capitulation and Hash Rate Recovery: The Key to Bitcoin's Rebound

After facing a strong rejection at $72,000 earlier this month, the BTC price has been on a downward trajectory, correcting over 10% from the June high. As Bitcoin loses crucial support levels, the chances of a price drop to $60,000 are growing.

According to historical trends, the Bitcoin miner capitulation has continued for months after the halving events. Focusing on miner capitulation and hash rate recovery, Willy Woo explains that the Bitcoin price recovery hinges primarily on weak miners exiting the market and the subsequent recovery of the hash rate.

"This one is for the record books as it's taking a lot of time for miner capitulation post-halving," Woo noted. He also attributed some resilience in miner profits to ordinal inscriptions.

Comparing the Current Situation with Previous Halving Cycles

Woo compared the current situation with the hash recovery during the previous halving cycles of 2017 and 2020. This typically coincided with the slow summer months when affluent Wall Street investors often take vacations. It has already been 61 days since the Bitcoin halving event in 2024.

Institutional Interest Wanes as Bitcoin ETF Outflows Continue

On the other hand, the US Bitcoin ETFs witnessed the fifth consecutive day of outflows on Thursday, June 20. The total Bitcoin ETF outflows stood at $140 million, with Grayscale's GBTC reporting a single-day outflow of $53.1 million, while the BlackRock Bitcoin ETF IBIT experienced a minuscule inflow of just $1.48 million.

These consecutive Bitcoin ETF outflows suggest that institutional interest in Bitcoin has been waning a bit, likely due to the Federal Reserve's stance on maintaining higher interest rates for a longer-than-expected period, leading to selling pressure on the Bitcoin price.