Analyst: This change will only make the Bitcoin market “interesting” on Thursday – Coin Update

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Since the halving of Bitcoin on May 11, investors fear a widespread “miner surrender”.

A miner surrender is an event on the cryptocurrency market where many BTC miners become unprofitable. This often happens for one of three reasons: 1) a price correction, 2) an adjustment of the network difficulties or 3) a halving of the block reward.

If they become unprofitable, the miners will be forced to liquidate the bitcoins they have mined in bulk to remain profitable. This is forcing the market down.

Although the impact on prices is not obvious, the data show that the miners’ surrender has started again. The thing is, the cryptocurrency market held up well.

Bitcoin miners surrender, but the market doesn’t

On May 31, prominent bitcoin investor and commentator Conner Brown shared the following data as evidence that the miners’ capitulation is about to begin.

Data shows that over the past week, addresses that are believed to be owned by miners have issued / sold 673 coins more than they generated.

On the last day alone, 279 excess coins were sold – this shows that the Bitcoin miners are trying to keep their companies afloat by liquidating their stocks.

Brown:

“In the past week, the miners sold 673 bitcoins more than they generated. We see the capitulation of inefficient miners, but prices remain stable. What do you think will happen when these miners are finally shaken off? “

Data about yesterday’s and last week’s Bitcoin miner coin activity. Image released by Conner Brown; Data from ByteTree.

Many may see the “surrender” as a bearish sign at first, but analysts are becoming bullish because the BTC price has not been shaken amid this uncertainty.

Financial analyst, podcaster, and author Preston Pysh comments that the price “held up better than I ever expected”, as did the hash rate of the underlying Bitcoin network.

The strength of the price alongside the hash rate indicates that buyers and other miners are coming to fill the gaps created by the “surrender”.

Pysh believes that this is a sign that “things will get very interesting” if the difficulty adjustment is made on Thursday that allows these capitulating miners to get back into the race.

Other bullish factors

This is not the only market factor that persuades Pysh to be bullish on Bitcoin at the moment.

In an extensive Twitter thread released late last week, he identified at least three factors. These are as follows:

  • Institutions have been accumulating huge amounts of Bitcoin through grayscale and futures since halving. Grayscale alone is more than 50% ahead of the number of BTC mined.
  • The Chinese yuan has started to fall against the US dollar in response to relations with Hong Kong.
  • The US dollar is said to have reached a point where “something could break”, so an alternative system may come into play.

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