Bitcoin miners are currently under financial stress following the fourth halving event. To offset rising operational costs, they are forced to offload their BTC holdings.
Recent on-chain data shows a wave of capitulation from miners, similar to December 2022 after the FTX collapse. The impact of this on the current cycle is uncertain.
Is BTC Ready To Resume Its Bull Run?
CryptoQuant’s Julio Moreno revealed that Bitcoin miner capitulation levels are comparable to December 2022, a low point after the FTX collapse.
FTX’s collapse triggered panic and sell-offs in the crypto industry, leading to a sharp decline in the price of Bitcoin.
The Network True Hashrate Drawdown shows a -7.6% reduction, indicating miners’ financial struggles. This could impact Bitcoin’s price significantly.
A chart showing BTC's Network True Hashrate Drawdown and price | Source: jjcmoreno/X
Miners selling BTC holdings could increase selling pressure and drive the price lower. However, miner capitulation has historically preceded market recoveries, suggesting a potential price rebound.
Bitcoin Price At A Glance
Currently, the BTC price is around $60,889, with a 0.2% increase in the past 24 hours. However, there’s still a weekly decline of over 5%.
The price of BTC near $62,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
