Bitcoin Plunge Coincides With Unknown Mining Pools Dump

Recent sharp declines in the Bitcoin (BTC) price appear to coincide with massive ‘coin’ dumping from unknown mining pools. If anything, the May 2020 halving may quite literally be emptying the wallets of unprofitable Bitcoin miners worldwide. Tweeting on Tuesday, Ki Young Ju, CEO of on-chain crypto analytics platform CryptoQuant, revealed the apparent relationship between the BTC spot price and mining pool wallet outflows:

Significant outflows from the unknown miner before the dip. They're CAPITULATING.https://t.co/WVdBy1t17E pic.twitter.com/1LQeLYpY6X

— Ki Young Ju 주기영 (@ki_young_ju) June 2, 2020

According to data from CryptoQuant, the major Bitcoin price declines on May 20 and June 2 correspond with significant outflows from unknown miners. On May 20, Bitcoin fell by over $700, posting a 7% loss in a little over 24 hours. As previously reported here on BeInCrypto, the flagship cryptocurrency plunged below $10,000 on Tuesday, shedding more than $1,000 in the process. Reports indicate that inefficient miners are offloading their BTC hoard following the block reward halving. Last week, miners sold 673 more Bitcoin than they generated. It’s a likely sign that a shakeout of weaker mining hands is already underway.

Data from Blockchain.com shows that unknown Bitcoin mining pools are the fifth-largest on the network, based on hash rate distribution. If these reports are correct, more miners will likely exit the network in the coming months. The Bitcoin hash rate is already under pressure and output took an expected dip post-halving. However, since bottoming out at 90 EH/s in late May, the Bitcoin hash rate has recovered back above the 100 EH/s milestone.