Miners are facing unprecedented pressure with operating profit margins squeezed to 25%, marking the lowest levels since January 2022. This situation has led to increased miner outflows, which traditionally signal local price bottoms. Historical patterns show a correlation between miner sell-offs and subsequent market recoveries, particularly after significant economic events, such as the run on Silicon Valley Bank and the recent volatility following the U.S. Bitcoin spot ETF launch.
The latest miner capitulation event suggests a turning point in market dynamics, as miners typically sell off during periods of financial strain. This activity can provide insights into potential price movements, as observed in March 2023 and January 2024, when miner outflows peaked alongside local price bottoms. With Bitcoin now trading just above $61,000, the market is reacting positively, showing a 2.8% increase in the past 24 hours, suggesting renewed investor confidence amid ongoing volatility.
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