- Will Clemente, co-founder of Reflexivity, stated that Bitcoin miners are selling aggressively.
- Clemente indicated that the data reveals that we are in a period of miner capitulation.
- On-chain analyst Root shared that unspent miner supply went down by 4k in 2.5 weeks.
Will Clemente, the co-founder of Reflexivity, stated that Bitcoin miners are selling aggressively. He shared a tweet analyzing the Bitcoin miner’s net position change to come to a conclusion. Clemente stated that the combination of today’s hash rate decline and hash ribbon bearish cross indicates that we are in a period of miner capitulation.
Clemente also shared a tweet yesterday stating that they are potentially entering a double-dip miner capitulatory period. On-chain Bitcoin analyst Root took to Twitter, sharing Clemente’s tweet to address the same issue. Root mentioned that the unspent miner supply went down by 4K in 2.5 weeks. He also compared it to Terra and Luna, stating it was 80K in just 2 days.
The Bitcoin hashrate, which was standing at an all-time high of 347.16 EH/s on November 12, 2022, has now dropped to 263.95 EH/s at press time, as per the data from Coinwarz. Similar to others, Bitcoin miners are experiencing significant difficulty in selling accumulated BTC for a profit.
According to the theory behind the “miner capitulation” scenario, as the price falls and some miners are ejected from the network, they will sell these reserve Bitcoins. This situation will drive down the price even more. In the worst case, this might result in a “death spiral” in the price of Bitcoin as a result of ongoing selling pressure and a domino effect.
At press time, BTC is trading at $16,461 with a 1.75% gain in the last 24 hours. Bitcoin is also hovering around its 52-week low as per the data from CoinMarketCap.