Bitcoin (BTC) Miners Capitulation – Another Predictable Drop?

Bitcoin (BTC) miners are among the holders who historically hold their BTC, even in times of scarcity. But would they have reached a stage of capitulation? This is the opinion of a CryptoQuant analyst, although it could be questioned. Let’s take stock.

Bitcoin miners undergoing capitulation?

Recall that a capitulation occurs when a mass of holders choose to sell their assets, as it faces strong selling pressures. As Professor Chaîne explained to us in his early July analysis, market participants have been under this pressure for months now:

The entire market, as well as the cohorts of short- and long-term investors, are in a state of significant unrealized loss on their positions. This loss of profitability causes increased pressure on sales which prompts participants to suffer substantial lossesselling its offer to the most resilient investors.

And this appears to be the case with bitcoin miners, who are gradually giving way, according to data shared by CryptoQuant. As we can see in the chart below, the miners have held out for a while after the last drastic drop in the price of BTC, but they started selling massively :

Evolution of miners’ BTC reserves with respect to price

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However, these data need to be measured. According to analyst Prof Chaîne, who works for Cryptoast, the trends are not so clear. Based on the Glassnode data, we can indeed see that miners are under considerable pressure, but that we have actually seen a slight build-up in the last few days :

While miners are under real pressure from decreasing revenues and increasing mining difficulty, a coordinated sales episode like the one that occurred in June is currently not observable. Rather, according to data from Glassnode, miners are saving up again, as the influx of more than 3000 BTC in their wallets in the last 7 days

miners change position capitulation

Change of position of Bitcoin miners

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What does this portend for the price of Bitcoin?

So be careful. If miners decide to sell in a coordinated way, this could portend a further drop in the price of Bitcoin, which has been flirting with the $ 20,000 threshold for days. But as it is, This doesn’t seem to be the case.

The question that then arises is whether if we have reached the “bottom Which is the lowest level of this bear market. Here, too, opinions are divided. While some see the rally in recent days as a sign of renewal for the price of BTC, others see it as a trap, with a low to come. Wait and see …

👉 Also in the news – Binance overtakes Coinbase to become the largest bitcoin (BTC) holder in the world

Sources: CryptoQuant, Glassnode

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