CryptoQuant analyst Crypto Dan pointed out that both the number and quantity of withdrawals from miners’ Bitcoin wallets have decreased, indicating that the market is gradually absorbing the selling pressure from miners. Bitcoin is expected to start a new round of upward trend in Q3.
(Background:
The number of Bitcoin holders exceeded one million for the first time in a year! The options market is optimistic about BTC reaching a new high in September.)
CryptoQuant: Selling pressure from miners is weakening
Small-scale miners still face operational pressure
The number of active Bitcoin addresses drops to the lowest since November 2010
In a depressed market sentiment, June is coming to an end, and Bitcoin has dropped from $71,900 at the beginning of the month to the current $61,575, with a correction of nearly 10%.
Bitcoin trend. Source: OKX Spot
During this decline, the selling by miners is considered one of the main reasons for the downturn. After the latest halving on April 20, Bitcoin’s block rewards decreased, and the operational costs of miners increased. Coupled with the decline in the popularity of Runes, mining companies had to sell Bitcoin to obtain operational funds or purchase new equipment to improve their mining capabilities.
Further reading:
JPMorgan: Total market value of US mining companies reaches a historic high, but why are miners still selling Bitcoin?
CryptoQuant: Selling pressure from miners is weakening
However, CryptoQuant analyst Crypto Dan stated in a post on June 28th that as of June 27th, the number of withdrawals from miners’ wallets has decreased from a peak of 53,000 to 8,000, a decrease of nearly 90% compared to the first nine days after the halving. It can be seen that the selling pressure from miners on the market is gradually weakening. At the same time, Crypto Dan stated that once all the selling pressure is absorbed, Bitcoin will enter a new round of upward trend.
Small-scale miners still face operational pressure
Although Bitcoin miners seem to have gradually adapted to the impact of the halving, economist and mining expert Jan Wuestenfeld, who focuses on Bitcoin, pointed out on social platform X on June 28th that the decline in hash price has also put pressure on inefficient miners recently.
The proportion of active addresses on the Bitcoin network in June, as shown by IntoTheBlock data, has dropped to 1.22%, with a peak of only 1.32%, the lowest since November 2010. The total number of active wallets has also reached a low point, with data on May 27th showing only 614,770 active addresses, the lowest since December 2018.
Juan Pellicer, Senior Researcher at IntoTheBlock, explained:
However, Juan Pellicer added:
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