Bitcoin Miner Sell Pressure ‘Weakening’ as BTC Withdrawals Drop 85%

BTC withdrawals from miner-affiliated wallets have gone from above 50,000 per day to under 10,000 since the halving, data shows.

• Bitcoin miners have spent several months adjusting to a new economic reality after April’s halving, which cut their subsidy per mined block by 50%.
• Network fundamentals have reflected a reshuffling taking place since, with both hash rate and mining difficulty dropping from all-time highs.
• Hash rate in fact reflects a state of “capitulation” among miners, per the popular Hash Ribbons metric — the 30-day moving average hash rate is below its 60-day equivalent.
• The current market can be seen as being in the process of digesting this sell-off, and fortunately, the quantity and number of bitcoins miners are sending out of their wallets has been rapidly decreasing recently.
• Positive movements in the cryptocurrency market can be expected in the third quarter of 2024.

Hash Price Raises Concerns over Small BTC Miners

• As reported, a declining hash price has led to reduced profit margins for smaller-scale miners.
• Between June 8 and June 24 alone, hash price, which reflects expected revenue per exahash, dropped by 50%.
• The decline in Bitcoin hash price has recently put less efficient miners under pressure.

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