Bitcoin (BTC) miners may have already sparked a “capitulation event,” fresh analysis has concluded.
In an update on June 24, Julio Moreno, senior analyst at on-chain data firm CryptoQuant, hinted the BTC price bottom could now be due.
BTC price bottom “typically” follows miner capitulation
Miners have seen a dramatic change in circumstances since March 2020, going from unprecedented profitability to seeing their margins squeezed.
This, CryptoQuant suggests, precedes the final stages of the Bitcoin sell-off more broadly in line with historical precedent.
“Our data demonstrate a miner capitulation event that has occurred, which has typically preceded market bottoms in previous cycles,” Moreno summarized.
Miner sales have been keenly tracked this month, with the @Bitcoin Twitter account even describing the situation as miners “being drained of their coins.”
— Bitcoin (@Bitcoin) June 18, 2022
“For miners, it’s time to decide to stay or leave,” CryptoQuant CEO, Ki Young Ju, added in a Twitter thread last week.
The situation is tenuous, but the majority of miners remain active, as witnessed by network fundamentals dropping only slightly from all-time highs of over 30 trillion.
Mixed signals over buyer interest
When it comes to other large BTC holders, however, the picture appears less clear.
After whales bought up liquidity near $19,000, CryptoQuant’s Ki this week…