Bitcoin’s recent decline has led to a bottom signal being announced by CryptoQuant. In the last 24 hours, Bitcoin fell by 4% to $58,350, leaving investors hopeful for a price increase. However, CryptoQuant revealed that miners are showing signs of capitulation, indicating a potential bottom in Bitcoin prices.
Miners are starting to shut down their underperforming machines and sell their BTC to hedge their exposure. This is evident through the decline in hashrate and mining revenue per hash, both of which have significantly dropped this month. Hashrate represents the mining power in the Bitcoin network, while hash price refers to the income miners receive from a unit of hashrate.
The metrics of miner capitulation are approaching the same level seen after the FTX crash in late 2022. The hashrate has fallen by 7.7% since the halving, and the hash price is near its all-time lows. Additionally, miners are experiencing a decline in daily revenue, dropping from $79 million on March 6 to $29 million currently. This has led to miners shutting down their equipment and a subsequent decrease in hashrate.
Historically, miner capitulation has been seen as a signal of a bottom in Bitcoin prices. During the FTX collapse in November 2022, miners also showed signs of surrender, and the price of Bitcoin hit a bottom of $15,000 before starting to rise again.
It’s important to note that this information is not investment advice. For those interested in investing in cryptocurrencies, Binance exchange offers a 20% commission discount when registering through the provided link. Stay updated with exclusive news, analytics, and on-chain data by following CryptoQuant’s Telegram and Twitter accounts.
Please note that this article has been creatively rewritten while maintaining the general semantics and accuracy of the content.
