Bitcoin (BTC) is currently weathering a miner capitulation phase, according to on-chain analyst Willy Woo.
Woo tells his 1.1 million followers on the social media platform X that the Bitcoin halving event in April is currently “culling weak miners”
The event, which happens roughly every four years, essentially cuts the Bitcoin reward that miners receive for powering the network in half, reducing the new supply of BTC entering the market.
Woo says the weak miners dump BTC “as they die” and then Bitcoin’s price rebounds afterward.
“But first we need to purge the degen open interest in futures bets. Liquidations need to happen before a pump.”Â
Woo also shares a chart that examines Bitcoin’s network flows.
Explains the analyst,
“A visualization of capital flows in and out of the Bitcoin store of value network over time. Units on the left are billions of USD per day.
Slowly, slowly… then all at once.”
Bitcoin is trading at $66,681 at time of writing. The top-ranked crypto asset by market cap is down nearly 5% in the past 24 hours and more than 5.5% in the past seven days.
BTC is also down more than 9.5% from its all-time high of $73,738, which it set on March 14th.
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