Halving Effect in Bitcoin: Miners May Provide a Buying Opportunity at the Price!

#Bitcoin miners throwing in the towel could bring further decline in the market.

The author of on-chain analysis platform CryptoQuant included the current situation of bitcoin miners. Stating that almost a month has passed since the Bitcoin halving, the analyst emphasized that there is evidence that miners have given up.

Citing the recently decreasing hash rate as a basis for this bug, the experienced name suggested that miners may be shutting down the machines:

Previously, the 30-day moving average of the hash rate peaked at 630 exahashes per second (EH/s), while it currently stands at 606 exahashes per second. While this decline is still modest and short-lived, the obvious pullback is notable. This trend changed after the halving.

He stated that miners, who became less efficient with the decreasing reward rates after the halving, started to quit production and larger mining companies strengthened their hands by ordering new devices.

Stating that we may be just at the beginning of the wave of miners' device shutdowns, the analyst reminded that declines in the hash rate have historically had a negative impact on the Bitcoin price.

However, he noted that this miner withdrawal did not have an immediate effect on the price, and that the price moved downwards days or weeks after the hash-specific withdrawal deepened.
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