Bitcoin miners have been actively selling their holdings since the halving event, according to on-chain data. This trend indicates that the amount of selling pressure coming from miners is not decreasing, potentially leading to a scarcity of BTC available for sale.

The halving event often triggers a phase of miner capitulation, as it cuts the block reward in half. During this period, mining becomes unprofitable, prompting miners to sell off their Bitcoin to cover operational costs. The prolonged nature of this phase exerts continuous selling pressure on the market.

Market Impact

The persistent selling pressure from miners has hindered Bitcoin’s price recovery, preventing it from surpassing previous highs. The ongoing liquidation of holdings has prevented the cryptocurrency from maintaining key moving averages, signaling a bearish trend in the market.

Analysis of the Bitcoin hash ribbons shows a significant period of miner capitulation that has yet to be resolved. This indicator reflects the continued stress faced by miners, contributing to the current selling pressure in the market.

The funding rates on popular exchanges like Binance, OKX, and Bybit reveal varying levels of long and short interest in Bitcoin. These rates provide insight into traders’ sentiment and potential price movements. Despite neutral funding rates, miners’ sales continue to impact the market significantly.

Future Prospects

The conclusion of the miner capitulation stage may hinge on several factors. A substantial increase in Bitcoin’s price could alleviate the need for miners to sell their holdings to cover costs, potentially changing the dynamics of the market.

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