Bitcoin Miners Face Severe Stress as Price Drop Continues

Bitcoin's short-term holders are facing significant stress after a recent price drop to $59.1K, with unrealized losses of $16.4 billion, increasing the risk of capitulation and contributing to weak market sentiment.

The Puell Multiple, which tracks miners' daily revenue, has plummeted to 0.74 from 0.83 at the end of May, while the 30-day average is nearing the 0.50 threshold that marks the beginning of massive equipment shutdowns in 2022.

Miner Capitulation scores are also negative, at -21%, well below the -15% threshold that signals severe pressure on miners.

Crypto analyst Darkfost highlighted weak demand in the current market environment, citing a record-breaking $10.5 billion exit from Bitcoin ETFs since 12 October.