Recent data from CryptoQuant suggests the Bitcoin mining industry is experiencing capitulation, a potential indicator that Bitcoin’s price may be nearing a local bottom. The market intelligence platform analyzed metrics related to miners who secure the Bitcoin network in exchange for newly issued BTC. One key sign of capitulation is the decline in Bitcoin’s hash […]
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- The Bitcoin mining industry faces capitulation, indicating a potential local price bottom for Bitcoin.
- Bitcoin’s hash rate fell 7.7% post-halving, hitting a four-month low and causing miner financial stress.
- Miners are selling BTC reserves, leading to increased outflows and contributing to Bitcoin’s recent price decline.
Recent data from CryptoQuant suggests the Bitcoin mining industry is experiencing capitulation, a potential indicator that Bitcoin’s price may be nearing a local bottom. The market intelligence platform analyzed metrics related to miners who secure the Bitcoin network in exchange for newly issued BTC.
One key sign of capitulation is the decline in Bitcoin’s hash rate, which represents the total processing power defending the network. The hash rate dropped 7.7% to 576 exahashes per second (EH/s), the lowest level in the previous four months, after peaking on April 27 at 623 EH/s.
Historically, such a drawdown in hash rate has correlated with conditions where Bitcoin’s price bottoms out. For instance, a similar 7.7% hash rate decline occurred in December 2022, when Bitcoin’s price hit $16,000 before increasing by over 300% in the following 1…
The post The Aftermath of Bitcoin Halving: Miners’ Struggle and the Road to Recovery appeared first on Coin Edition.
