Bitcoin

Bitcoin miner withdrawals have decreased by nearly 90% since the time of the block subsidy halving, data shows.
In a Quicktake post on June 28, onchain analytics platform CryptoQuant <a href="https://cryptoquant.com/insights/quicktake/667e0c86931dcb63ae996678-BTC-Miners-selling-pressure-decreases?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=quicktake&amp;utm_content=crypto-dan" target="_blank" rel="noopener nofollow">suggested</a> miner sell pressure is “weakening.”
<h2 data-ct-non-breakable="true" id="cryptoquant-bitcoin-miner-withdrawals-rapidly-decreasing">CryptoQuant: Bitcoin miner withdrawals “rapidly decreasing"</h2>
Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) miners have spent several months adjusting to a new economic reality after <a href="https://cointelegraph.com/news/bitcoin-halving">April’s halving</a>, 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 <a href="https://cointelegraph.com/news/66k-btc-price-critical-5-things-bitcoin-this-week">dropping from all-time highs</a>.
“After the Bitcoin halving, mining rewards were cut in half, so older model mining machines were no longer used as they were no longer cost-effective,” CryptoQuant contributor Crypto Dan explained. 
<blockquote data-ct-non-breakable="true">
 “As a result, mining activity decreased, and miners began selling Bitcoin in OTC transactions to cover mining operation costs.”
</blockquote>
Hashrate, in fact,&nbsp;<a href="https://cointelegraph.com/news/bitcoin-hash-ribbons-first-buy-signal-25k-btc-price">reflects a state of “capitulation”</a> among miners, per the popular Hash Ribbons metric — the 30-day moving average hash rate is below its 60-day equivalent.
While that in itself is traditionally treated as a buy signal by Bitcoin traders, Crypto Dan already sees the process winding down.
“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,” he continued.
<blockquote data-ct-non-breakable="true">
 “In other words, the selling pressure of miners is weakening, and if all of their selling volume is absorbed, a situation may be created where the upward rally can continue again.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/4dacdc69-53af-4ac5-a037-fa626e47a9d2.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin miner withdrawals. Source: CryptoQuant
 </figcaption>
</figure>
<a href="https://cryptoquant.com/asset/btc/chart/miner-flows/miner-withdrawing-transactions?miner=all_miner&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line" target="_blank" rel="noopener nofollow">Accompanying</a> CryptoQuant data puts the peak number of withdrawals from known miner wallets at more than 53,000 on April 10 — nine days before the halving.
Since then, that figure has been slashed to around 8,000 as of June 27 — an 85% decrease.
“Positive movements in the cryptocurrency market can be expected in the third quarter of 2024,” the post concluded.
<h2 data-ct-non-breakable="true" id="hash-price-raises-concerns-over-small-btc-miners">Hash price raises concerns over small BTC miners</h2>
As Cointelegraph reported, a <a href="https://data.hashrateindex.com/chart/bitcoin-hashprice-index" target="_blank" rel="noopener nofollow">declining</a> hash price has led to reduced profit margins for smaller-scale miners.
Related: <a href="https://cointelegraph.com/news/bitcoin-mayer-multiple-lows-last-30k-btc-price">Bitcoin Mayer Multiple hits lows that last accompanied $30K BTC price</a>
Between June 8 and June 24 alone, hash price, which reflects expected revenue per exahash, dropped by 50%.
Data from monitoring resource Hashrate Index <a href="https://data.hashrateindex.com/chart/bitcoin-hashprice-index" target="_blank" rel="noopener nofollow">puts</a> hash price at $0.048 as of June 28.
“The decline in Bitcoin hash price has recently put less efficient miners under pressure,” Bitcoin-focused economist and mining specialist Jan Wuestenfeld <a href="https://x.com/JanWues/status/1806422573825110126" target="_blank" rel="noopener nofollow">responded</a> on X.
<blockquote data-ct-non-breakable="true">
 “Since the halving, the hashrate has started declining (partially stopped following a price increase), but the current price correction further reduces miners’ revenues.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/63c3b042-5f71-4637-b16b-ec0e9f49c946.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin hash price (screenshot). Source: Hashrate Index
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin miner sell pressure ‘weakening’ as BTC withdrawals drop 85%

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Cointelegraph

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