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CryptoQuant announced the surrender of Bitcoin miners

Forklog / 04.07.2024 / 07:57
CryptoQuant announced the surrender of Bitcoin miners

Bitcoin miners have begun to turn off inefficient equipment and sell reserves, which is a definite sign of their capitulation. This is stated in the CryptoQuant report.

Experts noted that such periods are historically associated with low prices.

They noticed that the daily income of miners decreased from $79 million on March 6 to $29 million at the moment. The volume of commissions in revenue fell to 3.2%, which is the lowest share since April 8. Although before halving, the hype around Ordinals and Runes brought "tens of millions" of dollars to cryptocurrency miners.

The daily income of miners. Data: CryptoQuant.

The hashrate of the network decreased by 7.7% after the block reward was halved in April. This is the largest drawdown of the indicator since December 2022, when the bottom of the market was recorded after the collapse of the FTX.

The real drop in the bitcoin hashrate. Data: CryptoQuant.

According to CryptoQuant, daily outflows from miners' wallets have reached their maximum volumes since May 21. This indicates likely sales, experts say.

"In reality, some large mining companies have started using their reserves to generate profits and hedge risks," the analysts said.

Reserves of Bitcoin miners. Data: CryptoQuant.

At the end of April, the founder and CEO of CryptoQuant, Ki Yun Joo, found no signs of the miners' surrender. The same opinion was expressed by Glassnode analyst James Check in June, although he acknowledged serious problems for cryptocurrency miners.

Recall that the opposite conclusion was reached by online analyst Ali Martinez, as well as the creator of the Hash Ribbons indicator, the founder of Capriole Investments, Charles Edwards.

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