Crypto Miners’ Bitcoin Withdrawals Drop 90% Post-Halving
Bitcoin miners have dramatically reduced their withdrawals by nearly 90% since the recent halving event, as noted by CryptoQuant on June 28.
CryptoQuant’s data indicates a sharp decline in miner sell-offs following the halving, which slashed their rewards by half. This has led to a noticeable drop in hash rate and mining difficulty, reflecting a shift in the mining industry.
Impact on Mining Operations
CryptoQuant contributor Crypto Dan explained that many older mining rigs are now unprofitable, causing a decrease in mining activities. To cover costs, miners have turned to OTC transactions.
The current hash rate suggests a state of “capitulation,” but Crypto Dan believes the market is adjusting and the sell-off is slowing down.
Withdrawal Decline
The peak miner withdrawals from wallets hit over 53,000 on April 10, just before the halving. By June 27, this number had fallen to about 8,000, an 85% decrease.
READ MORE: Early Bitcoin Miner Transfers 50 BTC After 14-Year Dormancy
This suggests a weakening in selling pressure, which could signal a potential market rally.
Challenges for Smaller Miners
The drop in hash price has squeezed smaller miners, reducing their profit margins. From June 8 to June 24, hash price fell by 50%, putting additional pressure on less efficient operations.
CryptoQuant remains optimistic about the market’s future, predicting positive movements in the third quarter of 2024. Despite recent challenges, the long-term outlook for Bitcoin appears promising, especially if the current selling volume is absorbed.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
