Bitcoin (BTC) miners sold the equivalent of five mining days in the last three days, selling off their reserves. Miners continue to give signs of capitulation while Germany dumps millions of dollars in BTC and Mt. Gox repayments loom.
Notably, Bitcoin miners have sold 2,300 BTC in the last 72 hours, as reported by Ali Martinez on X. By the time of the post, the observed sell-off had a nominal value of approximately $145 million.
Moreover, it represents what the network usually mines in five days, considering an average of 450 BTC mined per day. This average is reached due to a 3.125 BTC per block at a 10-minute block interval, as designed.
Bitcoin: Miner Reserve – All Miners. Source: CryptoQuant / Ali Martinez
Bitcoin miners’ capitulation post-halving and sell-off
This massive sell-off is a trend that started with the halving in April and has intensified over the last few months as the production cost increased and the mining reward decreased. Finbold has been covering this data since then.
In May, we warned of an incoming capitulation as Bitcoin miners’ revenues dropped to a six-month low. The warning became real and more evident by early June, with mining reserves reaching a concerning two-year low.
As it developed, the capitulation also became evident in a drastic hashrate fall following the miner’s sell-off.
Now, these miners continue to hint at a short-term exit strategy, selling the equivalent of five mining days in just three days, and the market finally turns its eyes to this behavior with apprehension.
Selling pressure: Germany and Mt. Gox
At the same time, the United States government recently started selling part of its Bitcoin reserves, and the German government followed its lead by getting rid of large batches of BTC in the past few days.
Furthermore, Germany has continued its selling activity and, most recently, has already transferred more than 2332 BTC since July 1, worth more than $145 million.
The German Government transferred 832.7 $BTC($52M) out again 35 minutes ago, of which 282.7 $BTC($17.65M) was transferred to #Bitstamp, #Coinbase and #Kraken.German Government currently holds 43,859 $BTC($2.74B).https://t.co/uBaH2Wtxev pic.twitter.com/f15sht8Npc
— Lookonchain (@lookonchain) July 2, 2024All this happens as the defunct Mt. Gox prepares to initiate its creditors’ repayments, previously announced to this month. Market analysts expect a significant selling pressure fruit of these repayments, currently worth around $8 billion.
Bitcoin investors must be cautious and expect a volatile month, with potential capitulations and continued BTC sell-offs.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
