Key Points
- Bitcoin trades below $68k, amidst rare miner capitulation analyzed by Willy Woo.
- The Bitcoin on-chain analyst expects BTC's price to rebound soon.
Bitcoin on-chain analyst Willy Woo addresses a rare Bitcoin miner capitulation that's currently taking place.
In a post on X, he told his followers that BTC is undergoing this rare event, and it's from the BTC halving which culls weak miners.
He noted that as they die, they dump BTC, but the price will rebound afterwards.
Woo also noted that first, the market has to "be purged" of the degen open interest in futures bets. He said that liquidations need to happen before a new pump.
When Woo was asked by an investor whether the "paper Bitcoin issue" is gone, he responded saying that paper in the system got purged after FTX on November 2022. After that, BTC recovered.
Woo also shared a graph that shows the purple line as paper and spot BTC on exchanges.
He said that locally since April 2024, there is a build-up of paper despite spot being scooped. He highlighted that this has to be purged in order to be structurally healthy for new ATHs.
The concept of “paper Bitcoin” refers to Bitcoin derivatives that don't involve the direct ownership of the cryptocurrency.
BTC is trading below $68k
Bitcoin is trading below $68k today, ahead of US important economic data and amidst BTC ETFs outflows following a 19-day inflows streak.
According to the latest reports coming from SoSoValue, Bitcoin ETFs in the US recorded $65 million in outflows yesterday, June 10, for the first time after 19 consecutive days of net inflows.
Important economic events are set to be released this week and these can also affect the price of BTC.
Market participants are now waiting for the release of the U.S. Consumer Price Index (CPI), a key measure of inflation set for June 12, and the Federal Open Market Committee meeting expected this week on June 13.
