Bitcoin (BTC) miners are among the holders who historically keep their BTC, even in times of scarcity. But would they have reached a phase of capitulation? This is the opinion of a CryptoQuant analyst, although it may be questioned. We take stock.
Bitcoin miners in capitulation phase?
As a reminder, a capitulation occurs when a mass of holders chooses to sell their assets, as it faces heavy selling pressure. As Prof Chaîne explained to us in his analysis from the beginning of July, market participants have been under this pressure for months now:
“The whole market, as well as the cohorts of short and long term investors are in a state of considerable unrealized loss on their positions. This loss of profitability causes increased sales pressure which pushes participants to make substantial lossesselling their offer to the most resilient investors. »
And that seems to be the case for bitcoin miners, which are gradually giving way, according to data shared by CryptoQuant. As we can see on the following graph, the miners held on for a while after the last drastic fall in the price of BTC, but they started selling massively :
Evolution of BTC reserves of miners compared to the price
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However, these data must be measured. According to analyst Prof Chaîne, who works for Cryptoast, the trends are not that clear. Based on the data from Glassnode, we can indeed see that miners are under considerable pressure, but that we have actually seen a slight accumulation in recent days :
“Although the miners are really under pressure due to the decrease in their income and the increase in the difficulty of mining, an episode of coordinated selling such as the one that occurred in June is not observable at this time. Rather, according to Glassnode data, miners are saving again, as evidenced by the influx of more than 3000 BTC to their wallets in the last 7 days »
Change of position of Bitcoin miners
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What does this bode for the price of Bitcoin?
So be careful. If the miners decide to sell in a coordinated way, this could augur a further drop for the price of Bitcoin, which has been flirting with the $20,000 threshold for days. But as it stands, This does not seem to be the case.
The question that therefore arises is whether if we have reached the “bottom », that is to say the lowest level of this bear market. Here too, opinions are divided. While some see the rally of the last few days as a sign of renewal for the price of BTC, others see it as a trap, with an upcoming low. Wait and see…
👉 Also in the news – Binance overtakes Coinbase to become world’s largest bitcoin (BTC) holder
Sources: CryptoQuant, Glassnode
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