The key reason why Bitcoin (BTC) is struggling right now

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U.Today – The state of the market after the introduction of the FOMC shows the current struggle of miners who are massively capitulating and closing their positions. Such a trend could become shock therapy for the market, highlighting the underlying issues affecting Bitcoin’s recovery.

Despite the stock showing mighty momentum, BTC fails to gain upward momentum. The key reason for the discrepancy can be attributed to the capitulation of BTC miners after the halving, which essentially involves capping the price at this level. Increasing operations costs and a lower compensation structure are resulting in massive sell-offs by BTC miners, creating bearish pressure and preventing BTC from catching up to good signals from the broader financial markets.

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The situation is further exacerbated by the extent to which Flowbank, the bank that has a tripartite arrangement with Binance, is in bankruptcy proceedings. Overall, these developments further complicate Bitcoin market dynamics.

We’re looking at a mostly tranquil summer, with no clear catalyst that could drive the market in either direction and with lower volatility. The SEC’s Gary Gensler has signaled that a spot ETH ETF could be approved by the end of the summer, but it won’t be an immediate catalyst for BTC. The market is in a holding phase waiting for significant news or events to guide it.

This makes it a strategic window for ETH traders. With ETH volatile at 10 volumes relative to BTC and the spread likely to tighten with the return of ETH-issuing and spot ETH ETFs pending approval, this tranquil summer could be a good time to engage in ETH accumulation trades and strategic redistribution risk to avoid complications during periods of high volatility.

This article was originally published on U.Today

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