[Bitcoin withdrawals fell by 85%, Bitcoin miners’ selling pressure “weakened”]
Since the halving of the Bitcoin block subsidy, withdrawals from Bitcoin miners have dropped by nearly 90%. In a June 28 article, on-chain analytics platform CryptoQuant said selling pressure from miners was “ebbing.”
Bitcoin’s halving event in April saw the per-block subsidy cut in half, and miners will need time to adjust to the new economic reality. Network fundamentals reflect the shakeup since then, with both hash rate and mining difficulty falling from all-time highs.
CryptoQuant contributor Crypto Dan explained that after the halving, older models of mining machines were no longer used because they were no longer cost-effective, mining activity decreased, and miners began selling Bitcoin in OTC transactions to cover mining operating costs. According to the Hash Ribbons indicator, the 30-day moving average hash rate is below the 60-day moving average hash rate, which is considered a buy signal, but Crypto Dan believes this process is nearing an end.
He added that the market is pricing in the sell-off, with the number of bitcoins being moved out of wallets by miners declining rapidly recently. According to data from CryptoQuant, the number of withdrawals from miner wallets peaked at 53,000 on April 10, and as of June 27, this number had decreased to approximately 8,000, a decrease of 85%.
The article concludes that positive developments in the cryptocurrency market can be expected in the third quarter of 2024. As the price of computing power falls, profit margins for small-scale miners shrink. Between June 8 and June 24 alone, hash power prices dropped by 50%. As of June 28, the hashrate price is $0.048.
Bitcoin economist and mining expert Jan Wuestenfeld said the recent decline in the price of Bitcoin’s computing power has put pressure on less efficient miners. He added that hashrate has started to decline since the halving, but the current price correction has further reduced miners’ income.
