Bitcoin is currently experiencing a phase of miner capitulation, as reported by on-chain analyst Willy Woo. With a following of 1.1 million on the social media platform X, Woo explains that the recent Bitcoin halving event in April is eliminating weak miners from the network.

The halving event, occurring approximately every four years, cuts the reward that miners receive in half, thus reducing the new supply of Bitcoin entering the market. According to Woo, weak miners are selling off their BTC holdings as they exit the network, leading to a subsequent price rebound.

Woo emphasizes the need to clear out speculative futures bets before a significant price increase, stating, “But first we need to purge the degen open interest in futures bets. Liquidations need to happen before a pump.”

In addition to this analysis, Woo shares a chart illustrating Bitcoin’s network flows, showcasing the movement of capital in and out of the Bitcoin network over time. The chart highlights the gradual flow of capital before a sudden surge.

As of the time of writing, Bitcoin is trading at $66,681. The leading cryptocurrency by market cap has seen a decrease of nearly 5% in the past 24 hours and over 5.5% in the last seven days. Furthermore, Bitcoin is down more than 9.5% from its all-time high of $73,738 reached on March 14th.

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