Crypto Market Stagnation: Miner Selling and Macro Factors Take Center Stage

Experts at Wintermute have identified key drivers behind the crypto market's stagnation. Miner selling and macroeconomic factors are two significant contributors to this trend.

The firm notes that demand for Bitcoin ETFs failed to hold, with U.S. spot Bitcoin ETFs recording $390 million in net outflows from August 10 to 14. BlackRock's IBIT fund saw the largest losses during this period.

Wintermute analysts suggest that part of the demand that emerged in early August may have been speculative, rather than a sustained return of long-term investors. They also point to selling by miners as a potential source of pressure on the market.

Riot Platforms reported selling 4,300 BTC in the second quarter after selling 3,778 BTC in the first, resulting in the company's reserves falling to 11,380 BTC. The firm's all-in cost to mine one Bitcoin was nearly $91,000, while the asset's market price was below $64,000.

The situation around the Strait of Hormuz may remain the main external factor for the market throughout the week. Wintermute experts warn that further oil price increases could affect US inflation in August and reduce the likelihood of the Fed easing policy in September.