Bitcoin miner withdrawals have decreased by nearly 90% since the block subsidy halving, according to data from CryptoQuant.
In a Quicktake post on June 28, the on-chain analytics platform suggested that miner sell pressure is “weakening.”
Bitcoin miners have spent several months adjusting to the new economic reality after April’s halving, which cut their subsidy per mined block by 50%.
Network fundamentals have shown a reshuffling since then, with both hash rate and mining difficulty dropping from all-time highs.
“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.
“As a result, mining activity decreased, and miners began selling Bitcoin in OTC transactions to cover mining operation costs.”
The hash rate reflects a state of “capitulation” among miners, according to the popular Hash Ribbons metric, with the 30-day moving average hash rate below its 60-day equivalent.
While this is traditionally seen as a buy signal by Bitcoin traders, Crypto Dan believes the process is 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.
“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.”
CryptoQuant data shows the peak number of withdrawals from known miner wallets was more than 53,000 on April 10, nine days before the halving.
Since then, the figure has dropped 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.
As Cointelegraph reported, a declining hash price has led to reduced profit margins for smaller-scale miners.
Between June 8 and June 24, hash price, reflecting expected revenue per exahash, dropped by 50%.
Data from Hashrate Index puts 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 responded on X.
“Since the halving, the hash rate has started declining (partially stopped following a price increase), but the current price correction further reduces miners’ revenues.”
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