Bitcoin Dips Below $77,000 as Rally Boosts Mining Profitability

Bitcoin fell below $77,000 as the rally improves mining economy. Bitcoin traded at $76,536 Sunday, down 0.8% in 24 hours, after giving up earlier gains that had reached $77,468. The cryptocurrency had hit $79,461 on Friday before retreating, extending a correction after a strong rally fueled by falling US Treasury yields, spot demand, and forced liquidation of bearish positions. The price recovery has brought relief to miners, with hashprice up 20.4% over four days to $38.29 per petahash per second. Grayscale research head Zach Pandl cited three factors supporting long-term buyers: continued adoption, maturity of the current bear market, and favorable macroeconomic outlook. The bear market is about 10 months old, approaching the 11-12 month average duration of previous cycles. Interest rates remain the main risk, with the Fed holding rates at 3.5%-3.75% in July.