Selling pressure in the market seems to be easing, possibly paving the way for an upward surge. Miners are showing signs of capitulation as the 30-day MA hash rate drops below its 60-day counterpart. According to data-driven insights, Bitcoin miner withdrawals have plummeted a staggering 85% since the mid-April Bitcoin halving, indicating a weakening on miners to sell.
The post-halving period has presented Bitcoin (BTC) miners with significant economic adjustments, especially after their block were cut in half. This has led to a notable shift in the network’s dynamics marked by declines in hash rate and mining difficulty from their previous peaks.
Crypto Dan, a contributor at CryptoQuant highlighted that mining payouts were halved post-Bitcoin halving event, rendering older mining equipment less cost-effective. The widely-used Hash Ribbons statistic points towards miners capitulating as the -day moving average hash rate falls below its 60-day counterpart.
Although this process is slowing down to Crypto Dan, it is often perceived as a buy signal by Bitcoin traders. It appears that the market is still absorbing the effects recent sell-offs; however, there has been a decrease in both volume and frequency of being moved out of miner wallets lately.
In essence, there are indications that miners’ selling pressure is diminishing and could potentially lead to an upward surge if volume fully absorbs it. In April leading up to the halving event on April 10th – based on accompanying CryptoQuant statistics – 53,000 bitcoins were withdrawn from known miner wallets within nine days preceding it. As of June 27th though, number had shrunk significantly to around 8,000 bitcoins—marking an impressive reduction of 85%.
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