According to Coinglass, over 277,000 traders liquidated assets worth $877.79 million within 24 hours. The decline in BTC value may be attributed to a pullback before the impending halving and miner capitulation.
Notably, a similar pullback occurred prior to the last halving in 2020. Leading up to the halving, many miners ceased BTC mining due to increased operational costs and difficulty.
Bitcoin’s network has inherent difficulty adjustments to maintain consistent block time, compensating for changes in total hashing power. When miners capitulate, total hashing power decreases, prompting the network to lower the difficulty and potentially increase profitability for remaining miners.
Moreover, the recent liquidation may also be influenced by investor skepticism.
