Bitcoin Mining Companies Soar Amid Gains In Crypto Stocks

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Bitcoin Miner Capitulation Ended? On-Chain Data Signals Market Recovery – Crypto News

Published

2 years ago

June 28, 2024

Dripp

In an unprecedented development within the crypto landscape, data hinting at a potential BTC miner capitulation end has taken the crypto market by storm. Today, June 25, on-chain insights revealed a substantial dip in miners’ OTC BTC selling, hinting at a possible market recovery ahead.

Following this year’s Bitcoin halving event, mining rewards diminished significantly, impacting miner activity. This prompted a surge in miners to sell Bitcoin, primarily to cover mining operation costs.

BTC price encountered extreme volatility in its post-halving phase, aligning with the abovementioned factor. However, recent on-chain insights glimmer hope for future market movements.

Miners’ Selling Pressure Declines

According to the on-chain insights streamlined by CryptoQuant, miners’ BTC selling has taken a substantial dip since May this year. This means that the impact of selling pressure on Bitcoin is dwindling, birthing optimistic market sentiments.

Notably, should the market successfully absorb the total volume of miners’ selling, a promising path for upward momentum looms. This optimistic outlook, as projected by CryptoQuant, can be witnessed by the third quarter of this year.

BTC selling by miners

Besides, it is also worth noting that Bitcoin’s price started trading sideways since May. Nonetheless, with decreasing selling pressure, a bullish road for BTC price action looms.

Also Read: Kraken Co-Founder Donates $1M In ETH To Donald Trump

BTC Market Performance

At press time, the BTC price saw a 0.96% increase in value, trading at $61,357.47. This price surge comes against the backdrop of three consecutive days of inflows in BTC ETFs.

However, BTC Futures OI dipped 1.56% to $31.56 billion, underscoring the presence of some volatility. Conversely, the derivatives volume spiked 9.32% to $42.48 billion.

Bitcoin’s RSI moved along 35, validating its recent turbulent action with downside pressure. Nonetheless, should the token enter an oversold territory, a potential price rebound looms.

Moreover, with Bitcoin options expiry set to take place today, the market brims with optimism for an upside momentum ahead. Contrarily, it’s also worth noting that the U.S. and German governments were recently reported to have offloaded colossal amounts of BTC, adding a layer of intrigue to the future price action.

Also Read: Binance Lists ETHFI, MEME, PYTH Among 7 New FDUSD Trading Pairs

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