- Selling pressure is easing, and the market might be set up for the upward surge.
- Miners are capitulating when the 30-day MA hash rate is lower than 60-day counterpart.
There has been a data-driven 85% drop in Bitcoin miner withdrawals since the mid-April Bitcoin halving. The onchain analytics platform CryptoQuant said in a June 28 post that the pressure on miners to sell is “weakening.”
Miners of Bitcoin (BTC) have had to adapt to a new economic reality for a while now. Especially, after the halving in April that reduced their subsidy every block they mined by half. There has been a shakeup in the network’s foundations ever since. As the hash rate and mining difficulty have fallen from their all-time highs.
Market Rally Anticipated
Crypto Dan, a contributor to CryptoQuant, noted that after the Bitcoin halving, mining payouts were slashed in half, making older model mining equipment no longer cost-effective. The widely-used Hash Ribbons statistic indicates that miners are capitulating when the 30-day moving average hash rate is lower than its 60-day counterpart.
Crypto Dan sees the process slowing down, even though Bitcoin traders often see it as a buy signal. It seems like the market is still processing the sell-off; luckily, the amount and frequency of bitcoins being sent out of wallets by miners have been reducing lately, he said.
Put another way, miners’ selling pressure is easing. And the market might be set up for the upward surge to resume if their trading volume is fully absorbed. In the nine days leading up to the halving, on April 10, according to the accompanying CryptoQuant statistics, more than 53,000 bitcoin were removed from known miner wallets. As of June 27, that number had dropped to around 8,000, a reduction of 85%.
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