Analysis has shown that the selling power of Bitcoin miners, which was recently pointed out as one of the reasons for the decline in cryptocurrency, is decreasing.
What's new: Crypto Dan, an on-chain analyst, said on his “It is declining steeply,” he analyzed.
Background to the issue: The Bitcoin network distributes approximately 450 Bitcoins every day as block mining rewards. Miners use some of these Bitcoins to cover mining costs, such as purchasing mining machines and electricity bills. This is why Bitcoin miners are considered traditional market selling forces.
Crypto Dan explained, “After the Bitcoin halving that occurred last April, mining rewards were cut in half and miners no longer used inefficient older model miners.” As a result, mining activity naturally decreased, while selling pressure increased as miners sold their Bitcoin holdings in the over-the-counter market to cover operating costs.
In fact, looking at the on-chain data, the frequency of miner wallet withdrawals increased rapidly from April to May. However, the frequency has decreased rapidly since then and is now back to the pre-halving level.
Important point: Crypto Dan said, “The current market can be seen as being in the process of digesting this sell-off,” adding, “The selling pressure from miners is weakening, and when all of their selling volume is digested, a situation will be created where the upward rally can continue again. “It can be done,” he explained.
What lies ahead: He added, “We can expect positive movements in the cryptocurrency market in the third quarter of 2024.” Bitcoin price, which started the first quarter at the $42,000 level, rose 68.58% thanks to the buying trend from spot ETFs. However, in the second quarter, which was a welcome surprise, it fell 13.4% as of the 28th.
On the 28th, the price of Bitcoin is fluctuating around the $61,700 level, which is flat compared to the previous day.
