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Miner Capitulation Means Bitcoin Bottom Is Near: CryptoQuant

  • Bitcoin miners have become sellers as price fall hurts revenue
  • Miners have moved about 23,000 bitcoin to exchanges in June
Cryptocurrencies in the Czech Capital as Traders Assess Stablecoin Fallout
Photographer: Milan Jaros/Bloomberg

A major “capitulation event” in which Bitcoin miners funnel thousands of tokens to exchanges could signal an approaching bottom for the world’s largest cryptocurrency, if history is any guide.

In an effort to salvage plunging profits, Bitcoin miners are turning sellers after seeing the price of the bellwether token more than halve in 2022. This past month, miners moved 23,000 Bitcoin to exchanges, representing the highest monthly flow since May 2021, when China initiated a crackdown on its domestic crypto industry, data from tracker CryptoQuant shows. Earlier this week, Canadian mining firm Bitfarms Ltd. sold 3,000 Bitcoin for $62 million, following in the footsteps of Riot Blockchain Inc., which started selling off holdings in April.