• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
Breaking News: SEC Strikes: Seeks Temporary Restraining Order To Freeze Binance.US Assets
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
Bitcoinist.com
No Result
View All Result
Breaking News: SEC Strikes: Seeks Temporary Restraining Order To Freeze Binance.US Assets

Bitcoin Capitulation Among Small Miners is Starting, Making a Correction Likely

Yashu Gola by Yashu Gola
3 years ago
in Bitcoin
0
  • Small bitcoin miners are selling more tokens than they mine, according to weekly data provided by ByteTree.
  • They produced 5,888 BTC on a weekly adjusted timeframe but sold 6,473 BTC to offset their operational costs.
  • The trend, coupled with bearish technical fractals, amounts to more potential downside corrections in the bitcoin market.

A recent reduction in operational revenues is forcing Bitcoin miners to sell off their existing crypto holdings.

The 21-day Miner’s Rolling Inventory, a barometer created by on-chain analysis portal ByteTree to track changes in miner’s bitcoin wallets, was a little more than 111 percent as around 0500 UTC. That showed that miners sold 11 percent more bitcoin than what they mined on a weekly-adjusted timeframe.

In retrospect, miners produced 5,888 BTC but disposed of 6,561 BTC – selling off 673 BTC from their inventory to offset rising operational costs.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, crypto
Miners lost 673 more BTC than they mined | Source: ByteTree

Bitcoin Halving

The selloff follows Bitcoin’s third halving – a May 11 event that effectively reduced the cryptocurrency’s daily supply limit from 1,800 to 900 BTC. While the phenomenon made bitcoin scarcer and – as many believe – more valuable in the long-term, it left miners with lesser daily revenues against the same operational cost.

The market earlier anticipated that halving would send small miners out of business. But they somewhat survived the impact owing to the cryptocurrency’s record bull run ahead of the halving.

The BTC/USD exchange rate rose from $3,800 in March to above $10,000 on May 7. So it seems, miners’ BTC inventory profited from the wild upside move. They are now dumping their profitable short-term holdings to survive another day.

bitcoin, btcusd, xbtusd, btcusdt, crypto, cryptocurrency
BTCUSD struggles to move past $10,000 amid concerns about miners’ capitulation | Source: TradingView.com

Capitulation creates additional selling pressure on Bitcoin, which is already struggling to establish its bullish bias under a strict technical resistance level near $10,000. If traders fail to break bullish above the said price ceiling, it could amount to another wave of corrective downtrends.

That would further panic miners into selling their bitcoin holdings, oversupplying the market as demand recedes.

Bullish, Nevertheless

But some analysts believe the ongoing dumping does not hurt Bitcoin. Preston Pysh, the co-founder of the Investor’s Podcast Network, suggested that the crypto’s price is holding steady despite the constant capitulation by small miners. He also noted that Bitcoin’s hash power is also stable.

“This price has held way better than I ever expected. Very bullish sign,” Mr. Pysh wrote. “Hashing has been holding [on] its own for the past 4 days, so after the [difficulty] adjustment on Thursday, I think things are going to get very interesting.”

The Mining Difficulty Adjustment represents how difficult it is to mine a cryptocurrency based on its network’s mining activity. It dropped 6 percent on Thursday. Observers noted that the plunge was mild, given Bitcoin’s ability to sustain above $9,000 – a sufficient level for miners.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Bitcoin

Bitcoin Investors Get Robust Returns In May – How Will Binance Lawsuit Affect Their Gains?

4 hours ago
Rare satoshis

Rare Satoshis: The Rising Star In Crypto After BRC-20 And Meme Coins?

24 hours ago
Bitcoin Whale Shark

Bitcoin Sharks & Whales Have Bought 93,000 BTC Since April Top: Santiment

1 week ago
Bitcoin

BREAKING: Bitcoin Mining Industry Spared From 30% Tax In US Debt Ceiling Deal

1 week ago
Bitcoin

Bitcoin Taker Buy Sell Ratio At Highest Since Feb, What Does It Mean?

1 week ago
Bitcoin

Bitcoin Shrimps Continue Aggressive Accumulation As Holdings Hit ATH

1 week ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Now Trending

  • Whale Power Unleashed: Mooky Emerges as the Rival Meme Coin...

    6 days ago
  • Exploring the Meteoric Rise of Mooky: Could It Be the Next...

    6 days ago
  • Discover the Next Big Thing: Mooky.io Presale Boasting Fair...

    6 days ago

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit
1xBit
1xBit
K8
K8

Press Releases

  • Ripple IPO Could Break Every Record, Learn How You Can...

    1 hour ago
  • Axie Infinity (AXS) Price Prediction: Can AXS Bounce Back?...

    2 hours ago
  • Top Cryptos to buy today: TOADS, ADA, RNDR, SOL

    3 hours ago
  • Is PEPE’s hype over? A look at the Next 5 Big...

    4 hours ago
  • 3 Top DeFi Cryptocurrencies for June 2023: Solana, Cardano...

    8 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.