BTC withdrawals plummet 85 indicating a decline in selling pressure from Bitcoin miners

Data reveals that Bitcoin miner withdrawals have significantly decreased by almost 90% since the block subsidy halving event. CryptoQuant, an onchain analytics platform, has suggested that miner sell pressure is weakening. Bitcoin miners have been adjusting to a new economic reality since April’s halving, which reduced their subsidy per mined block by 50%. This adjustment has caused both hash rate and mining difficulty to drop from their all-time highs. The decrease in mining rewards has rendered older model mining machines obsolete and no longer cost-effective. The hash rate reflects a state of capitulation among miners, as indicated by the popular Hash Ribbons metric. Although this is typically seen as a buy signal for Bitcoin traders, CryptoQuant contributor Crypto Dan believes that the process is winding down. The current market is in the process of digesting the sell-off, and the quantity of bitcoins being sent out of miner wallets has rapidly decreased. According to CryptoQuant data, the number of withdrawals from known miner wallets peaked at over 53,000 on April 10, but has since decreased to around 8,000 as of June 27, marking an 85% decrease. The post concludes that positive movements in the cryptocurrency market can be expected in the third quarter of 2024. However, the declining hash price has raised concerns for smaller-scale miners, as it has led to reduced profit margins. Between June 8 and June 24, the hash price dropped by 50%, reflecting a decrease in expected revenue per exahash. This decline has put pressure on less efficient miners. It is important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.