【Alert!】Bitcoin Hash Rate Plummets, Miner Sell-Off Activity Drops to Historic Lows, Major Risks Looming for the Market?

April 29, 2025 - Bitcoin miners' sell-off activity has significantly decreased, reaching its lowest level since May 2024, raising concerns in the market. While this seemingly shows market resilience, it bears similarities to historical patterns of market stagnation or decline, suggesting that miners' restraint may be concealing deeper risks. The drop in hash rate aligns with warning signals from past cycles, leading investors to speculate whether this is a precursor to impending market volatility.

Miner Behavior Hides Crisis, Decline in Hash Rate Suggests Price Turbulence?

Dismal sell-offs by miners are often a precursor to market consolidation or downward pressure, although there have been occasional brief rebounds. For example, exceptions occurred in December 2012, September 2013, and July 2021. Nowadays, miners' cautious attitude is concerning, indicating potential market fragility.

Even more unsettling is the trend of Bitcoin's hash rate. In April 2025, the hash rate reached a historical peak, but subsequently experienced a pullback similar to that in April 2021, which typically foreshadows a significant price drop. Although Bitcoin prices have not yet reached these peaks, the decline in hash rate has raised concerns about whether miners are beginning to feel pressure and whether the market is about to face volatility.

Delicate Balance May Be Disrupted, Miner Pressure Becomes Key

Although miners have seized the opportunity of Bitcoin's price surge this year, their restraint may also reflect complacency. Should Bitcoin prices drop or stagnate, miners' 'surrender' could trigger forced sell-offs in the market, leading to a new wave of market turbulence.

Bitcoin Faces Pressure, Technical Indicators Signal Warning

Currently, Bitcoin prices hover around $95,000, but technical indicators remind investors to remain cautious. The Relative Strength Index (RSI) has reached 68.44, close to the overbought range, indicating weak buying momentum. Meanwhile, the On-Balance Volume (OBV) has stabilized, with purchasing enthusiasm waning. Without strong trading volume support, Bitcoin may enter a consolidation phase or face a slight correction before challenging the critical $95,500 level.