Bitcoin Bottom Near: Miners Capitulating Like During FTX Implosion, Says CryptoQuant
Bitcoin Bottom Signals: Miner Capitulation Insights
It’s not every day you get a clear signal in the chaotic world of cryptocurrencies, but right now, Bitcoin miners are flashing warning signs that we can’t ignore. According to CryptoQuant, the current level of miner capitulation is eerily similar to what we saw at the end of 2022, right after the FTX implosion.
What’s Happening with Bitcoin Miners?
Bitcoin (BTC) miners are in a tough spot. Over the past 30 days, Bitcoin has taken a 13% hit, currently trading at around $60,300. This crucial support level has been a bouncing point since April, often propelling Bitcoin back towards the $70,000 mark.
Signs of Miner Capitulation
So, why are we seeing this capitulation? Let’s break it down:
- Hashrate Decline: The mining power in the Bitcoin network, or hashrate, has plunged by 7.7% since the halving. This drop is a significant indicator of miner stress.
- Hashprice Drop: Hashprice, which measures the revenue miners earn per unit of hashrate, is nearing all-time lows. This is another red flag that miners are struggling.
- Revenue Plummet: Miners’ daily revenue has nosedived from $79 million on March 6 to just $29 million today. A staggering 63% decline in daily revenues has forced many miners to turn off their equipment, leading to the subsequent drop in hashrate.
CryptoQuant’s report highlights that the halving and the collapse of transaction fees, now at just 3.2% of total revenue, have hit miners hard. This mirrors the conditions of December 2022, the last significant market bottom following the FTX collapse.
What’s Next for Bitcoin?
Given the patterns we’re seeing, there’s a strong likelihood that Bitcoin could bounce back from this capitulation. Historically, such events have preceded market bottoms and subsequent recoveries.
Final Thoughts
We’re on the brink of another potential Bitcoin bottom. The signs are clear: miner capitulation, plummeting hashrates, and falling revenues. Keep an eye on these indicators, as they could signal a prime buying opportunity for Bitcoin.
Photo credit: Coindesk
