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Bitcoin miners continue with the mass sell-off for more than a month

Cryptodnes2024/06/18 23:10
By:Cryptodnes

Today marks 33 days of the ongoing miner capitulation phase, with historical data showing an average duration of 41 days.

This duration indicates that many of the miners have been under financial stress since the last halving event, which made their operations unprofitable. Since its peak on May 26, hashing power has fallen by over 12%. However, miners expected a 25% drop after the halving, which did not happen.

Sustainability stems from two main reasons. The first is the high demand for transactions with Bitcoin , causing their fees to increase, especially supported by Runes and Inscriptions.

The other reason is the strategic build-up of reserves by miners along with Bitcoin sales to achieve operational sustainability.

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In the last month alone, miners have sold more than 3,000 BTC, continuing the trend seen since December 2023, replicating the patterns seen in 2017-2018.

Glassnode data shows that since October 2023, miner balances have decreased by around 30,000 BTC. This is taken as a negative for the future of Bitcoin as miners continue to sell the tokens, causing downward pressure on the market and negatively impacting the price dynamics of the leading crypto asset.

In short summary, while navigating the difficulties following the halving, miners are using transaction fee revenue along with strategic financial measures to overcome them, but the constant selling of BTC by them still remains a crucial factor in the dynamics of the market. Bitcoin as well as for price trends.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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