Bitcoin (BTC) miner withdrawals have fallen by nearly 90% since the block subsidy halving, according to data.
In a June 28 Quicktake post, on-chain analytics platform CryptoQuant suggested that miner selling pressure was “weakening.”
CryptoQuant: Bitcoin Miner Withdrawals “Decline Sharply”
Bitcoin miners have had months to adjust to a new economic reality since the April halving, which reduced the subsidy per block mined by 50%.
Network fundamentals reflected the reshuffle, 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 rigs were no longer cost-effective and fell into disuse,” explained CryptoQuant contributor Crypto Dan.
“As a result, mining activity declined, and miners began selling bitcoins on OTC exchanges to cover mining operating costs.”
In fact, the hash rate reflects a state of “surrender” among miners according to the famous Hash Ribbons metric: the 30-day moving average hash rate is lower than the 60-day equivalent.
That in itself is traditionally considered a buy signal by Bitcoin traders, but Crypto Dan is already seeing that process coming to a halt.
He added, “The current market can be seen as in the process of digesting this sell-off, but fortunately, the quantity and number of Bitcoins that Bitcoin miners are exporting from their wallets has been rapidly decreasing recently.”
“In other words, the selling pressure from miners is waning, and if their selling volume is all absorbed, a situation may be created where the upward rally can continue again.”
The highest number of withdrawals from known miner wallets was estimated at more than 53,000 on April 10, according to CryptoQuant data. This is 9 days before the halving.
Since then, as of June 27, that number has dropped to about 8,000, an 85 percent decrease.
“A positive movement in the cryptocurrency market can be expected in the third quarter of 2024,” the post concluded.
Hash prices raise concerns for small-scale BTC miners.
As Cointelegraph reported, falling hash prices have reduced profit margins for small-scale miners.
Related: Bitcoin Mayer Multiple Last Hit Low With $30K BTC Price.
Between June 8 and June 24 alone, hash prices, which reflect the expected return per exahash, fell by 50%.
According to data from monitoring resource Hashrate Index, the hash rate as of June 28 was $0.048.
“The recent decline in Bitcoin hash prices is putting pressure on less efficient miners.” Bitcoin-focused economist and miner expert Jan Wuestenfeld responded on X (formerly Twitter).
“After the halving, hashrate began to decline (partially stopped after the price increase), but the current price adjustment has further reduced miners’ profits.”
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