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Bitcoin miner ‘capitulation event’ may have already happened — research

Bitcoin miner ‘capitulation event’ may have already happened — research

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.

The dip to $17,600 — 70% below November’s all-time highs for BTC/USD, has hit some players hard, data now shows, with miner wallets sending large amounts of coins to exchanges.

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.”

“For miners, it’s time to decide to stay or leave,” CryptoQuant CEO, Ki Young Ju, added in a Twitter thread last week.

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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.

Bitcoin network fundamentals overview (screenshot). Source: BTC.com

Mixed signals over buyer interest

When it comes to other large BTC holders, however, the picture appears less clear.

Related: ‘Foolish’ to deny Bitcoin price can go under $10K — Analysis

After whales bought up liquidity near $19,000, CryptoQuant’s Ki this week…

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