Bitcoin Miners Approaching Capitulation Near FTX Implosion Level, Signaling Potential Bottom: CryptoQuant Analysis

Bitcoin miners are currently displaying signs of capitulation, a phenomenon often associated with a market bottom, reminiscent of the period following the FTX crash in late 2022. This comes as daily miner revenue has plummeted from $79 million to $29 million post the bitcoin halving earlier this year. The hashrate has also seen a significant decline of 7.7% since the halving, attributed to inefficient miners shutting down their mining equipment.

The dwindling hashrate and hashprice, key indicators of miner capitulation, have both experienced substantial decreases this month. Hashrate, representing the mining power in the Bitcoin network, has dropped by 7.7% since the halving, approaching all-time lows. On the other hand, hashprice, the revenue miners generate from a unit of hashrate, is also nearing its lowest levels.

The reduction in daily revenue has forced miners to turn off their equipment, leading to the decline in both hashrate and mining revenue. Daily revenue has seen a sharp decline from $79 million to $29 million as of today, a significant decrease that has impacted miners’ operations.

According to CryptoQuant, miners have faced a substantial 63% decline in daily revenues due to the halving and the decrease in transaction fees, which now account for only 3.2% of total revenue. The current levels of miner capitulation are comparable to those witnessed in December 2022, a period that marked the market bottom post the FTX crash.

Bitcoin’s price is currently at $60,300, having faced a 3% drop on Wednesday. This price level has served as a crucial support since April, with bitcoin rebounding thrice from this range before moving towards the $70,000 threshold. Data provider CryptoQuant anticipates a potential repeat of this pattern in the near future, as various indicators point towards an impending capitulation phase following a period of intense selling pressure.

For more insights on the evolving situation, you can explore further details in the article titled “Bitcoin Hashrate May Finally Slow as Miners Face Scorching Summer Heatwaves.”