Bitcoin (BTC) holders had a tough year in 2022, but it was an even tougher year for BTC mining — mining stocks fell more than 80% and mining company bankruptcies cemented bear market — but , the worst minor surrender may be over. Cryptoslate analysis.
As the price of BTC plunged 75% from its all-time high (ATH), the hash rate also hit an all-time high as miners stepped up their efforts to remain profitable in the energy crisis.
Decrease in BTC Minor Yield
The hash ribbon indicator chart above shows that the worst of minor capitulation is over when the 30-day moving average (MA) crosses the 60-day moving average — switching from light red to dark red area. .
When this paradigm shift occurs, we expect price momentum to switch from negative to positive. This historically indicates a good buying opportunity (back from dark red to white).
Glassnode data in the chart above analyzed by CryptoSlate suggests that the worst of the miner capitulations are all but over as BTC turns bullish and breaks towards $19,000.
Selling Pressure on BTC Miner Supply Eases
The total supply of BTC currently held in miner wallets has reached around 1.8 million BTC after a drawdown of around 30,000 BTC. This does not directly indicate that the BTC has been sold, but may have actually been moved to another wallet for long-term storage.
On the other hand, as shown in the chart below, miner spending dropped significantly as miner remittances to exchanges dropped significantly.
Selling pressure from miners has reached its lowest level in three years, selling less than 100 BTC on a 7-day moving average. Miner was spending more of his BTC than was mined compared to 2022’s atrocious drawdown, but all charts show that selling pressure is set to switch to buying pressure. is showing.