Miners' Sales and Expensive Oil: Experts Name the Causes of Crypto Market Stagnation
"Sales of Miners and Expensive Oil: Experts Name Reasons for Crypto Market Stagnation"
The crypto market currently lacks sufficient internal drivers for growth, and escalating tensions around the Strait of Hormuz could further worsen prospects for crypto assets, according to analysts at Wintermute.
Key pressures include a significant $390 million net outflow from US spot Bitcoin ETFs from August 10-14, suggesting recent demand was speculative. While some altcoin ETFs saw inflows, Bitcoin's inability to rally on positive news indicates sellers have returned.
Another factor is selling pressure from miners, exemplified by Riot Platforms selling 4,300 BTC last quarter while its mining costs exceeded Bitcoin's market price. With a record hash rate, many miners face unprofitable conditions, potentially forcing further sell-offs from their reserves.
The primary external risk is macroeconomics, particularly rising energy prices. Brent crude surged nearly 8% due to the Strait of Hormuz situation, threatening to boost US inflation and potentially delay Federal Reserve rate cuts.
Wintermute maintains a neutral stance, noting market positions are moderate, but requires stabilization in ETF flows or sustained capital return for a more positive outlook. Upcoming Fed minutes, PMI data, and the Jackson Hole symposium are key events, while the Strait of Hormuz remains a major external risk.
cryptonews.ru1 h fa
