Willy Woo, an analyst, cautions that further liquidations may drive down the price of bitcoin to $62,500. This month, miners’ Bitcoin OTC desk holdings rise to 54,000 BTC.
Prior to the highly anticipated FOMC meeting, there was a notable surge in Bitcoin sales, as on-chain data indicated that miners were selling their holdings at a rapid pace. With a market capitalization of $1.328 trillion, the price of Bitcoin (BTC) is 1.5% down at $67,400 as of the time of publication.
Bitcoin miner capitulation rises
Julio Moreno, Head of Research at CryptoQuant, has noticed notable indications of Bitcoin miner surrender. 1,200 Bitcoin were sold by miners on Monday, making it the highest amount of bitcoin traded per day since late March.
The fact that these trades were made over-the-counter (OTC) rather than on exchanges suggests that miners are choosing to make sizable, covert deals that have a delayed effect on market pricing. Miners’ Bitcoin OTC desk holdings increased by 54,000 BTC this month, hitting a record high.
The rise in Bitcoin transfers to OTC desks implies that miners could be getting ready to liquidate more of the cryptocurrency, maybe because they are worried about future price declines or are in dire need of cash. Many mining businesses and individual miners have expressed that they are unable to sustain profitable operations in the wake of the recent halving, which might result in a potential exodus from the sector.
BTC price drop to $62,500?
Willy Woo, a bitcoin expert, has suggested that the current liquidations might lead to more price declines. According to Woo, in order to unload the remaining speculative holdings, Bitcoin may fall below $62,500 if the subsequent wave of long liquidations keeps on this path.
Woo stressed that before there can be any meaningful upward rise again, there must be a liquidation of the “degen” open interest in futures bets.
The Scalping Pro claims that Bitcoin has seen another rejection from its range high. Since March, the price of the cryptocurrency has been bouncing between $60,500 and $71,500; this is the fourth time that the top boundary of this range has been rejected.
The expert points out that Bitcoin must sustain this level of support in order to prevent future drops, as it is located close to the mid-range at $65,000.
Donald Trump supports crypto miners
Donald Trump, the former president, has openly shown his support for cryptocurrency miners. This position was expressed on Tuesday at an important event at Mar-a-Lago that included prominent members of the cryptocurrency mining industry.
Trump’s stance in favor of cryptocurrencies may get support from people who are familiar with technology and important players in the digital asset market.
Donald Trumps meets with CleanSpark and Riot platforms executive
Executive Chairman of CleanSpark Inc. Matthew Schultz provided observations from the gathering, whereby Trump acknowledged and showed respect for cryptocurrency. Trump also met with the CEO of Riot Platforms, Jason Les, and the head of public policy, Brian Morgenstern.
“President Trump will protect your right to own Bitcoin, to mine Bitcoin, to transact with Bitcoin, and for many of us, to work in the Bitcoin industry,” Morgenstern said.
Today, Riot CEO, @JasonLes_, and Riot’s Head of Public Policy, @MorgensternNJ, met with @realDonaldTrump to discuss #Bitcoin mining and energy. 🇺🇸
“President Trump will protect your right to own Bitcoin, to mine Bitcoin, to transact with Bitcoin, and for many of us, to work in… pic.twitter.com/T0CFKR3hOv
— Riot Platforms, Inc. (@RiotPlatforms) June 12, 2024
Trump reaffirmed his support for the industry while highlighting the importance that Bitcoin mining plays in maintaining the electrical system. Trump emphasized energy supremacy and promised to support these technologies going forward, especially if he were to win the presidency again.
“We want all the remaining Bitcoin to be made in the USA. It will help us be energy-dominant,” Trump said.
These changes happen at a time when cryptocurrency miners are under constant investigation for the harm they do to the environment and the burden they put on regional power systems. Trump’s support may have a big impact on political and public attitudes, which might change the industry’s overall story.
The US Energy Information Administration (EIA) began gathering information on the amount of energy used by cryptocurrency miners in February. Strong opposition to this program, however, resulted in a court ruling that put a temporary stop to the data collecting.
Furthermore, using environmental sustainability as justification, the Biden administration is moving decisively toward controlling digital assets. The Fiscal Year 2025 Revenue Proposals, a noteworthy proposal from the Department of the Treasury, call for a 30% tax on the power used by cryptocurrency mining companies by 2025.
In contrast, Trump is actively interacting with the cryptocurrency community in an effort to support his political resurgence. He promised to commute Ross Ulbricht’s sentence and declared his campaign will accept cryptocurrency donations during a recent Libertarian Party conference. His participation was further demonstrated during a fundraiser for his campaign against Joe Biden that drew notable attendees like the Winklevoss twins and raised $12 million.
Trump seems to be making a calculated effort to win over new supporters by emphasizing cryptocurrencies once again and making them a central part of his program. This position is in sharp contrast to the present administration’s strategy, which strongly favors strict controls.
Elon Musk drops the lawsuit on OpenAI for breach of mission. What will happen?
Elon Musk declared he would decide when to comment on his choice to drop the OpenAI lawsuit. Musk backed out of the case when his own AI company, xAI, started to challenge OpenAI.
The most recent event is that Elon Musk has abandoned his lawsuit against OpenAI and CEO Sam Altman, alleging that they have violated the company’s original pledge to put people before money.
The billionaire dropped his case only one day before a California judge was set to consider OpenAI’s move for dismissal. Musk had claimed that the business had broken its initial agreement to function as a non-profit dedicated to creating artificial intelligence for the sake of mankind and had instead become a “de facto subsidiary” of Microsoft Corp.
Elon Mush vs OpenAI
Much before the court case, the dispute between Musk and OpenAI was publicized. Musk was one of the startup’s original backers and co-founders, although he eventually broke up his relationship with it.
Musk’s assertions were refuted by OpenAI, which stated that he had previously pushed the business to seek significant investment and backed its move to a for-profit organization. As Musk has claimed, OpenAI denied any claims that it violated a founding agreement or promised to make its technology open-source.
As a direct rival of OpenAI, Musk established his own AI company, xAI, last year. xAI has successfully raised $6 billion in a Series B fundraising round, with notable investors including Sequoia Capital, Andreessen Horowitz, and Fidelity Management & Research Company.
The goal of xAI, according to its website, is to “understand the true nature of the universe.” Interestingly, the business debuted Grok, a chatbot that was modeled after “The Hitchhiker’s Guide to the Galaxy,” last year. Before making its debut, Grok completed a rigorous two-month training phase and is equipped with real-time internet knowledge.
What’s ahead from Musk?
Regarding his abrupt change of heart and the rationale for his decision to drop the OpenAI lawsuit, Elon Musk provided no explanation. Musk did, however, state that he will talk about this more later in a recent message on the X platform.
NEWS: Elon Musk has dropped his lawsuit against OpenAI and Sam Altman. https://t.co/hxDrenmZzO
— Sawyer Merritt (@SawyerMerritt) June 11, 2024
On Monday, Musk announced that if OpenAI’s AI software were to be integrated into operating systems, he would forbid the usage of Apple Inc. devices throughout his enterprises. Such an arrangement was classified as potentially dangerous by him.
