The post Bitcoin at a crossroads – Miner capitulation vs signs of market stability appeared on BitcoinEthereumNews.com.

Bitcoin was trading close to the $59,000 range at press time There seemed to be some miner capitulation, but large miners still accumulated Bitcoin faced significant miner capitulation last week as its price dipped, leading to heightened outflows from miners. This occurred alongside a spike in mining difficulty, with the same reaching its highest level in years and putting additional pressure on miners. However, recent metrics indicate that this capitulation may be nearing its end as Bitcoin showed signs of stabilizing somewhat.  Bitcoin sees miner capitulation CryptoQuant‘s data revealed that Bitcoin saw significant miner capitulation last week as its price dropped to the $49,000-range. On 5 August, daily miner outflows surged to 19,000 BTC, the highest level since 18 March.  This sell-off occurred as miners faced increasingly narrow profit margins. The margin fell to 25%, the lowest since 22 January. Source: CryptoQuant The analysis further indicated that some miners sold portions of their reserves, realizing a loss of $22 million – Marking the largest daily loss since 29 May. A sharp hike in hashrate and network difficulty drove this wave of capitulation.  The metrics reached new all-time highs over the past week, putting additional strain on miners’ operations. These challenging conditions forced miners to liquidate holdings to cover costs, highlighting the pressure they faced during this period. Current state of miners’ holdings That’s not all. The holdings of smaller miners reached a low point due to the recent capitulation in the Bitcoin market. Data from the Miner Balance by Cohort revealed that even before this latest capitulation, smaller miners (pink line) were experiencing a steady decline in their Bitcoin holdings – A trend that intensified following the halving event in Q2. Source: CryptoQuant On the contrary, larger miners have been increasing their holdings. According to the aforementioned analysis, larger miners…

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Filed under: News - @ August 18, 2024 1:02 am