Bitcoin is facing a significant downturn, dropping by 4% in the past 24 hours to $58,350 amidst various events. Investors have been eagerly awaiting a rise in BTC prices, and CryptoQuant has now announced a bottom signal for Bitcoin.
According to CryptoQuant, the capitulation of miners is a strong indicator that Bitcoin has historically reached its price bottom. The data shows that miners are starting to sell off their BTC and shutting down underperforming machines to hedge their exposure.
The signs of miner capitulation include a decrease in hashrate and mining revenue per hash, both of which have seen significant drops this month. The hashrate, which represents mining power in the Bitcoin network, has fallen by 7.7% since the halving, while the hash price is near all-time lows.
The decline in daily revenue for miners, from $79 million to $29 million, has led to a decrease in hashrate as miners shut down their equipment. Older processors are no longer as profitable as newer machines post-halving, prompting some miners to disconnect from the network.
Historically, miner capitulation has been seen as a signal of a price bottom by many analysts. The FTX crash in late 2022 also saw signs of surrender by miners, with Bitcoin hitting a bottom at $15,000 before starting to rise again.
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