Bitcoin Short-Term Holders Face $16.4B Losses as Puell Multiple Approaches 2022 Shutdown Threshold

According to on-chain data from CryptoQuant, Bitcoin short-term holder whales faced $16.4 billion in unrealized losses during the recent price drop to $59.1K. The Puell Multiple, which tracks miners' daily revenue against their yearly average, fell to 0.74 from 0.83 at the end of May, approaching the critical 0.50 threshold that preceded major equipment shutdowns in 2022.

The Miner Capitulation metric stood at -21%, well below the -15% pressure threshold, signaling severe strain on Bitcoin miners. Analyst Axel Adler Jr noted that current conditions mirror the deteriorating environment that led to widespread mining operations closures in 2022. Capital outflows from Bitcoin ETFs, totaling $10.5 billion since mid-October, combined with bearish market sentiment, are intensifying pressure on mining profitability.