Bitcoin and Alternative Cryptocurrencies: What to Expect in June?

Analysts predict that Bitcoin, the world’s largest cryptocurrency, could go through a period of little to no growth in June as summer begins.

Bitcoin experienced a significant surge in May, marking its eighth consecutive monthly increase out of the past nine months. This remarkable performance in May was the best the cryptocurrency has seen since February, when it recorded an impressive 44% rise. Coin Metrics, a trusted source in the industry, reported these figures.

ETH Surge

The surge in value can be credited to the recent upswing in ETH, which took place prior to the SEC’s green light on the modification of regulations, thereby permitting the introduction of Ethereum ETFs in the United States. As a result, ETH experienced a significant surge of 20% within just two days.

Prospective investors in ETH ETFs must now complete S-1 registration forms for each specific fund. Analysts have noted that the cryptocurrency market in June lacks a significant catalyst following the completion of the halving and Bitcoin Spot ETF approvals.

According to Antoni Trenchev, co-founder of crypto exchange Nexo, once these new products receive full approval from the SEC, which is likely to happen in late June, they are expected to have a positive impact on ETH and the broader altcoin market.

Bitcoin has been fluctuating within a limited range ever since it retraced from its all-time peak in March. “Bitcoin has hardly moved in the past three months, and it’s not necessarily negative if this trend continues.

Lengthy and uneventful periods of consolidation often precede significant price movements. We can observe this pattern in the previous halving year of 2020, where Bitcoin remained stagnant for five months before experiencing a rapid upward surge,” Trenchev commented.

Based on historical data provided by CoinGlass, June has been a rather volatile month for Bitcoin. Over the past decade, the average return for BTC price in June has been a mere 0.25%. According to Trenchev, the return is skewed by two exceptionally poor years, 2022 and 2013.

What Should Investors Pay Special Attention To?

In the upcoming month, traders will closely monitor the Federal Reserve’s policy meeting on June 11 and 12. Of particular interest will be the Friday release of the personal consumption expenditures price index, which serves as the central bank’s preferred measure of inflation.

According to Yuya Hasegawa, a crypto market analyst at Japanese Bitcoin exchange Bitbank, Bitcoin’s price is expected to keep fluctuating within the descending channel. The speaker also mentioned that Bitcoin might experience a significant decline, potentially erasing almost half of its recent gains and returning to approximately $65,000.

However, the price of Bitcoin could face some downward pressure due to miners selling their holdings. Hasegawa mentioned that the typical duration for miners to discover and handle a fresh block has risen. In contrast, the hash rate of the network (the collective computational capacity needed by miners to mine Bitcoin and process network transactions) has declined. This indicates that as miners’ capacity to extract fresh coins diminishes, their profitability also diminishes.

“This indicates a decline in the profitability of Bitcoin mining, and miners are facing challenges in their mining operations,” Hasegawa stated. If the price keeps dropping, they might have no choice but to sell their BTC holdings in order to keep their cash flow stable. This can create a cycle of negative consequences.

According to Julio Moreno, the director of research at CryptoQuant, their ongoing challenges can be attributed to the decrease in transaction fees following the halving event. Nonetheless, he mentioned that miners have yet to engage in significant selling.

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