Bitcoin is currently experiencing a phase of miner capitulation, as noted by on-chain analyst Willy Woo.
With a following of 1.1 million on X, Woo explains that the recent Bitcoin halving event in April is eliminating weaker miners from the network. This event occurs approximately every four years and cuts the Bitcoin reward for miners in half, reducing the new supply of BTC in circulation.
According to Woo, these weaker miners tend to sell off their Bitcoin as they exit the market, causing a temporary dip in price before a rebound occurs.
Woo emphasizes the need to clear out speculative futures bets before a significant price increase can take place.
In addition to his analysis, Woo shares a chart illustrating Bitcoin’s network flows, showcasing the movement of capital within the store of value network.
Bitcoin is currently trading at $66,681, down nearly 5% in the past 24 hours and over 5.5% in the past seven days. The cryptocurrency has also dropped more than 9.5% from its all-time high of $73,738 reached on March 14th.
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