Bitcoin Miners Done Selling? 5 Things to Know for BTC Price This Week

Monday 29 June 2020, 7:42 PM AEST - 11 months ago

Bitcoin (BTC) begins a new week in uncertain times after regaining $9,000, but where is BTC/USD headed in the coming days?

Cointelegraph Markets highlights five factors driving Bitcoin price action for the week ahead.

Stocks optimism returns with $9K

Following a major slide on Friday, stocks futures were gaining early on Monday, despite ongoing pressure from Covid-19 concerns.

Dow Jones, S&P 500 and Nasdaq futures all rose modestly, cementing a quiet weekend that saw Bitcoin outperform in terms of volatility.

BTC/USD, which has shown a tendency to copy stock market movements in recent weeks, briefly lost $9,000 support on Sunday before regaining the level.

The move had in fact been long coming — most of last week saw $9,000 testing in a slow grind down away from five figures.

Further weakness in the S&P 500, with which Bitcoin is 95% correlated in recent months, could be particularly damaging in the short term, trader Tone Vays warned on Thursday.

Nevertheless, some traders were optimistic. Cointelegraph Markets analyst Michael van de Poppe noted that even at recent lows of around $8,900, Bitcoin was still up 140% since March.

A BTC investment is still far ahead of stocks for Q2, with gains in excess of 40%.

Bitcoin vs. S&P 500 3-month chartBitcoin vs. S&P 500 3-month chart. Source: SkewThe difficulty may adjust down again

Last weeks bearish momentum appeared to take its toll on Bitcoin network fundamentals. The difficulty, set for an adjustment in around 30 hours, has flipped negative.

Should the trend continue, a downward shift would contrast starkly with the 15% rise seen during the last adjustment two weeks ago.

The difficulty is an essential mechanism that ensures miners are incentivized to participate in the Bitcoin network, and automatic adjustments function as economic policy.

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