Bitcoin Miners Face Post-Halving Squeeze as Cango’s Forced Sale Signals Sector Stress

If you want to know how the crypto sausage gets made, look no further than the miners. Last week, as Bitcoin’s price whipsawed from $78,800 down to a 15-month low near $60,000, the real drama wasn’t on the charts. It was in the server rooms and loan books of mining firms like Cango, who dumped 4,445 BTC to cover a collateralized loan. That’s not a rounding error. That’s a distress flare.

The forced sale, reported by NewsBTC and Cointelegraph, is the latest sign that the post-halving profitability squeeze is real, and it’s biting. Cango’s move comes just as whales bought $2.8 billion in Bitcoin on the dip, but unlike the deep-pocketed accumulators, miners are running out of margin for error. Hardware costs are up, energy prices haven’t come down, and the halving has slashed block rewards. The result? Even the most efficient miners are one margin call away from liquidation.

Bitcoin’s price action has been a rollercoaster, but the real story is under the hood. Miner reserves have hit multi-year lows, as firms liquidate holdings to stay afloat. The hash rate is still elevated, but the composition is shifting, smaller players are getting washed out, while the survivors are consolidating power. The market barely blinked at Cango’s sale, but that’s exactly the point: forced miner capitulation is now a feature, not a bug, of the new cycle.

The broader context is a crypto market that’s repricing risk with a vengeance. Yuval Rooz of Digital Asset called out the “empty shell” token models getting vaporized as institutions migrate to chains with real utility. Bitcoin, for all its volatility, is still the benchmark. But when miners are forced sellers, the supply overhang can cap rallies and exacerbate drawdowns. The days of “number go up” on autopilot are over.

Historically, miner capitulation has marked major bottoms. The 2022 and 2024 cycles both saw similar forced selling, followed by sharp recoveries once the weak hands were flushed. But this time, the overhang is bigger, and the macro headwinds are stiffer. The Fed’s path is still in focus, payrolls are softening, and risk appetite is fragile. Bitcoin’s bounce off $60,000 was impressive, but resistance at $72,000 has held firm, and every rally is met with fresh supply from miners and leveraged players unwinding.

Cross-asset flows show crypto is no longer trading in isolation. The correlation with tech stocks remains high, and the AI-driven selloff in equities has bled into risk assets everywhere. Even whales are playing it cautious, buying the dip but not chasing breakouts. The market is waiting for a catalyst, a dovish Fed, a regulatory breakthrough, or a true miner washout, to reset the narrative.

The real risk is that the forced selling isn’t over. If Bitcoin slips back below $60,000, expect another wave of miner liquidations, especially among firms with high leverage or aging hardware. On the flip side, if the sector can weather the storm and hash rate stays sticky, the survivors could emerge stronger, with less competition and a bigger share of future rewards.

For traders, this is a market that rewards discipline and punishes complacency. The days of “buy the dip” without a stop are over. Now, it’s about timing entries, managing risk, and watching the miner wallets like a hawk.

Strykr Watch

Technically, Bitcoin is in no man’s land. Support at $60,000 is the line in the sand, lose that, and the next real level is $55,000. Resistance at $72,000 has capped every rally since the crash. The 200-day moving average sits at $68,500, and price is ping-ponging around it. RSI is neutral, but miner outflows are a bearish tell.

On-chain metrics show miner reserves at a multi-year low, and exchange inflows have ticked up, classic signs of forced selling. Funding rates are flat, suggesting no one is in a hurry to lever up. Volatility has spiked, with realized vol above +60% annualized, and options skew is pricing in more downside risk.

If Bitcoin can reclaim $72,000 on volume, the path to $80,000 opens up fast. But as long as miner wallets keep bleeding, every rally is suspect. Watch for capitulation spikes, big red candles on high volume, as potential reversal signals.

The bear case is that the miner squeeze intensifies, triggering a cascade of forced liquidations. The bull case is that the worst is over, and the survivors are now in control. Either way, this is a trader’s market, not an investor’s paradise.

The opportunity is in the volatility. Sell rips into resistance, buy panic flushes into support, and keep stops tight. For the truly bold, tracking miner wallet flows and front-running their sales is the new edge.

Strykr Take

The post-halving era is here, and it’s not for the faint of heart. Miner stress is both a risk and an opportunity. If you can read the flows and stay nimble, this market will reward you. But don’t fall for the old narratives, this cycle is about survival, not speculation.

datePublished: 2026-02-09 14:15 UTC