Bitcoin miner withdrawals have plummeted nearly 90% since the April halving, significantly reducing sell pressure. According to CryptoQuant, the decline in withdrawals from miner-affiliated wallets signals a potential market recovery as the sell-off digests.

Bitcoin Miner Withdrawals Plummet 90% Post-Halving, Easing Sell Pressure and Adjusting Market Dynamics

Data reveals that BTC withdrawals from miner-affiliated wallets have gone from above 50,000 per day to under 10,000 since the halving.

According to data (via Cointelegraph), Bitcoin miner withdrawals have declined nearly 90% since the block subsidy halved.

CryptoQuant, an on-chain analytics platform, indicated in a June 28 Quicktake post that the pressure from miner sellers is "weakening."

Bitcoin miners have been adjusting to a new economic reality for several months following the halving of the subsidy per mined block in April, which reduced it by 50%.

Network fundamentals have demonstrated a reorganization since the hash rate and mining difficulty decreased from their 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.”

Hash Ribbons Indicate Miner Capitulation Easing as Bitcoin Withdrawals Drop, Hinting at Potential Rally

According to the widely used Hash Ribbons metric, the 30-day moving average hash rate is below its 60-day equivalent, which indicates that miners are in a state of "capitulation."

Crypto Dan observes that the process is already winding down, even though Bitcoin speculators typically interpret this as a buy signal.

“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.”

According to the CryptoQuant data accompanying it, the peak number of withdrawals from known miner wallets was over 53,000 on April 10, nine days before the halving.

Since then, the figure has been reduced by approximately 85% to 8,000 as of June 27.

“Positive movements in the cryptocurrency market can be expected in the third quarter of 2024, the post concluded.

Declining Hash Price Squeezes Small-Scale Bitcoin Miners, Cutting Profit Margins by 50%

As reported by Cointelegraph, the declining hash price has reduced the profit margins of smaller-scale miners.

Between June 8 and June 24, the hash price, representing the anticipated revenue per exahash, decreased by 50%.

According to data from the Hashrate Index, a monitoring resource, the hash price is $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 hashrate has started declining (partially stopped following a price increase), but the current price correction further reduces miners’ revenues.”

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