Bitcoin Danger Bells! Will Extreme Sales Begin with Miners Giving Up? - Coin Bulletin

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According to the observation of CryptoQuant's on-chain analysis platform, Bitcoin miners are at a critical threshold.

Profitability indicators in the mining sector have currently entered the 'extremely low payment' zone, which could mark the beginning of a challenging period for miners.

This development is directly related to two main factors: increase in Bitcoin mining difficulty and pullback in Bitcoin price. The halving of mining rewards after the fourth Bitcoin Halving in April 2024 has increased pressure in the sector. At the same time, Bitcoin hashrate continues to rise, indicating that competition in mining activities is intensifying further.

After Bitcoin's historical peak, its decline trend has led to a decrease in returns for miners. While revenues are decreasing, the cost of mining is still high, which is pushing miners to sell at a loss. According to CryptoQuant data, miners are currently transferring large amounts of Bitcoin to exchanges, indicating that they are forced to sell in order to survive.

Is miner capitulation coming? When looking at historical data, miner sales can trigger accumulation periods. In previous cycles, Bitcoin price has responded positively in the medium term when miners conducted significant sales. CryptoQuant suggests monitoring the Hash Ribbons indicator to detect miner capitulation.

BTC-0.83%
D-1.02%
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