Is the Capitulation of Bitcoin Miners Over? On-Chain Data Signals Market Recovery
In an unprecedented development in the crypto world, data indicating the end of a potential BTC miner capitulation has taken the crypto market by storm. Today, June 25, on-chain information revealed a significant decrease in OTC BTC sales by miners, indicating a possible market recovery ahead.
Following this year’s Bitcoin halving, mining rewards have decreased significantly, impacting miner activity. This has caused miners to sell Bitcoin primarily to cover their mining operation costs.
BTC price faced extreme fluctuations in the post-halving phase, consistent with the above-mentioned factor. However, recent on-chain information provides hope for future market movements.
Miners’ Selling Pressure Decreasing
According to on-chain analysis developed by CryptoQuant, miners’ BTC sales have dropped significantly since May this year. This means that the impact of selling pressure on Bitcoin has diminished, giving rise to optimistic market sentiment.
In particular, the market needs to successfully accommodate the total volume of miners’ sales; This is a promising path for upward momentum. This optimistic outlook predicted by CryptoQuant can be witnessed in the third quarter of this year.
It is also worth noting that the Bitcoin price has been trading sideways since May. However, with the selling pressure abating, an upward path is emerging for the BTC price movement.
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BTC Market Performance
At press time, the BTC price gained 0.96% to trade at $61,357.47. This price increase occurred against the backdrop of three consecutive days of inflows in BTC ETFs.
However, BTC Futures OI fell 1.56% to $31.56 billion, underscoring some volatility. Conversely, derivatives volume rose 9.32% to $42.48 billion.
Bitcoin’s RSI is trading at 35, confirming its recent turbulent move with downward pressure. However, a potential price recovery could occur if the token enters the oversold territory.
Moreover, with Bitcoin options expiration taking place today, the market is brimming with optimism for an upward momentum. On the contrary, it is also worth noting that the US and German governments have recently been reported to have transferred massive amounts of BTC, adding a layer of intrigue to future price movements.
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