Bitcoin experienced its largest single-day drop since April 13 on Monday, June 24, plunging 8.1% to $58,528. According to data from Binance, the world's largest cryptocurrency exchange, Bitcoin's price stood at $60,636 as of 4 PM Singapore time on Tuesday — a 9.8% decline from early June.
DBS Bank senior investment strategist Daryl Ho told The Straits Times that compared to more stable fixed-income assets, Bitcoin historically exhibits volatility between 30% to 40%. "This remains within normal fluctuation ranges," he noted, adding that long-term trends will depend on monetary policy shifts and the ripple effects of rising mining costs post-halving.
Post-Halving Mining Cost Surge Triggers Bitcoin Sell-Off
CoinDesk reported Monday that following Bitcoin's fourth halving event, mining operations faced sharply increased costs — prompting large-scale sell-offs. Singapore-based QCP Capital's internal Telegram communications revealed that miners' Bitcoin holdings have decreased by approximately 50,000 BTC since January.
The report also indicated that major Bitcoin holders, including the German government, liquidated over $1 billion worth of BTC during the first two weeks of June.
Market Downturn Linked to Fed Rate Cut Uncertainty
BNN Bloomberg's Monday analysis connected the cryptocurrency market slump to growing skepticism about potential Federal Reserve rate cuts. Some analysts interpret the digital asset sell-off as signaling shifting risk appetites in broader financial markets.
James Butterfill, Head of Research at European crypto asset manager CoinShares, told CNBC: "Following the latest FOMC meeting, we've seen $1.2 billion exit crypto ETFs over two weeks due to persistently pessimistic expectations about near-term rate cuts."
Bitcoin Market FAQs
Q: How does Bitcoin halving affect mining profitability?
A: Halving reduces block rewards by 50%, immediately doubling miners' operational costs. This often forces less efficient operations to sell holdings to cover expenses.
Q: Why are institutional investors important for Bitcoin's price stability?
A: Large-scale holders like ETFs provide liquidity buffers, but their coordinated exits (as seen recently) can accelerate downward price movements.
Q: What macroeconomic factors most influence cryptocurrency markets?
A: Federal Reserve policies, particularly interest rate decisions and quantitative tightening measures, create ripple effects across all risk assets — including crypto.
👉 Discover how leading exchanges are adapting to market volatility
The current correction highlights Bitcoin's inherent volatility while underscoring its growing correlation with traditional financial markets. As mining economics continue evolving post-halving, analysts recommend monitoring hash rate adjustments and institutional flow trends for clearer directional signals.