Bitcoin weeds out 'weaker miners' before resuming uptrend

Bitcoin (BTC) is currently in a miner capitulation phase, as noted by blockchain analyst Willy Wu.

Turning around to his followers on social media platform X, Wu pointed out that after the April halving event Bitcoin "weed out the weaker miners".

The halving, which happens roughly every four years, effectively halves the rewards miners receive for maintaining the network, thereby reducing the flow of new BTC tokens into the market.

According to him, weaker miners are selling off their holdings, “when they capitulate', and the price of Bitcoin tends to recover afterwards.

“First we need to clear the speculative open interest in the futures markets. The liquidations must happen before the price spike.”

Woo share and a graph that illustrates Bitcoin network flows.

“This graph visualizes the flow of capital to and from the Bitcoin store of value network over time. The units on the left represent billions of dollars per day.”

At the time of writing, Bitcoin is trading at $68,300. The number one cryptocurrency by market capitalization has recovered nearly 5% in the last 24 hours.