U.Today – The state of the post-FOMC market reveals the current struggle of miners, who are massively capitulating and closing their positions. This trend could become shock therapy for the market, highlighting the underlying issues that are impacting Bitcoin's recovery.
Even though stocks are showing strong momentum, BTC is failing to generate any bullish momentum. The key reason for the divergence can be attributed to the post-halving capitulation by BTC miners which is essentially capping the price at this level. Rising trading costs and lower reward structures result in sell-offs by BTC miners, putting bearish pressure and not allowing BTC to catch up with good signals in the broader financial markets.
The situation is further aggravated by the fact that Flowbank, a bank that has a tripartite agreement with Binance, is in bankruptcy proceedings. Overall, this development further complicates the dynamics of the Bitcoin market.
A basically calm summer awaits us, without a clear catalyst that drives the market in any direction and with an environment of lower volatility. Gary Gensler of the SEC has given a signal that a spot ETH ETF could be approved towards the end of summer, but that would not be an immediate catalyst for BTC. The market is simply in a holding pattern, waiting for important news or events to guide it.
This makes it a strategic window for ETH or ETH traders. With ETH volatility at a 10 volume premium vs. BTC and the spread likely narrowing as ETH overwriters return and anticipate approval of the ETH Spot ETF, this quiet summer may be a good time to engage in accumulation trading. for ETH and a strategic redistribution of risks, to avoid complications in periods of high volatility.
This article was originally published on U.Today.
