Bitcoin (BTC) Slips to $63K Amid Massive Miner Capitulation

• Bitcoin miners are struggling post-halving. 
• Miners are shutting down operations and liquidating their bitcoins amid dwindling revenue numbers. 
• Bitcoin feels the pressure as miners capitulate. 

Bitcoin is reeling from the impacts of the April 19 halving as miners reassess if it’s profitable to continue operating now that rewards, revenues, and profits are only half of what they used to be. With most miners forced to shut down their operations, Bitcoin is facing an uphill battle to stay afloat.

Miners Bear the Brunt of Bitcoin’s Reward Halving

The Bitcoin halving ushered in a new era of scarcity for the network, but it has also posed significant challenges for miners as they navigate reduced rewards and revenues per block. 

The new landscape is unforgiving, forcing many miners to shut down operations and resulting in a massive drop in Bitcoin’s difficulty , falling from 88.1 trillion hashes to 83 trillion hashes at press time.

In addition to the drop in difficulty, miners have been grappling with record-low revenue per terahash per second (TH/s) over the past two months. According to data from CoinWarz , miner revenue has decreased from $0.12 pre-halving to $0.05 at press time—a 58% decrease. Total daily mining revenue has also seen a sharp decrease, plummeting from $107 million to $29.9 million since the halving.

The revenue hit comes despite many assuming that increased transaction fees from Ordinals and the Rune protocol would help offset the reduced block rewards. 

Making matters worse, the current network condition is leading to miners capitulating as they shutter down operations. According to IntoTheBlock , Bitcoin miners have sold more than 30,000 BTC, valued at nearly $2 billion, since June alone. This sell-off has visibly impacted the asset’s price performance, which has struggled over the past month.

Bitcoin’s Price Struggles 

Bitcoin’s price has been locked in a tug-of-war between bullish and bearish forces. Institutions have been buying at a remarkable rate, with Blackrock alone surpassing $20 billion in assets under management in just the past month, while miners have been offloading substantial amounts of BTC.

Earlier this month, Bitcoin surged close to its all-time high of $73,000, fueled by momentum from ETH ETF approvals and institutional investments. However, since then, despite multiple attempts, the asset has struggled to break above $69,000 in the last two weeks. 

Instead, it has repeatedly retreated from $68,000 to settle around $65,000, forming a tight range. Finally, BTC broke out of this range on Sunday, plunging to the $63,000 mark.

Although Bitcoin’s recent price action may seem stagnant, hope looms with potential approvals for Ethereum ETFs in the coming weeks, which could inject new life into BTC, potentially propelling it beyond its all-time high toward the $80,000 level.

On the Flipside

• Bitcoin ETFs experienced nearly $200 million in outflows after BTC fell below $65,000.
• MicroStrategy purchased 11,900 bitcoins valued at $786 million during BTC’s drop below $65,000.

Why This Matters

The current miner capitulation signals a massive shift in Bitcoin’s network dynamics and price trajectory as institutions effortlessly absorb the flood of assets dumped by miners.

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