It appears that Bitcoin (BTC) miners are nearing a state of capitulation – a phenomenon often associated with market bottoms.
This comes as Bitcoin, the largest cryptocurrency by market capitalization, has seen a decline of 13% over the past month and 2.7% over the last week.
As of the time of writing, Bitcoin is trading at $60,300, down 2.3% in the last 24 hours. This price level serves as a significant support threshold since April, with the cryptocurrency bouncing off this range three times before returning to $70,000.
CryptoQuant, a data analysis company, suggests we may soon see a similar scenario again, as several indicators point to miner capitulation following a period of significant selling pressure.
One of the key indicators of this capitulation is the significant drop in both hash rate and hash price.
The hash rate, representing the total computational power used to mine Bitcoin, has fallen by 7.7% since a recent halving event. Meanwhile, the hash price, which measures miners’ revenue per unit of hash rate, is near historical lows.
Additionally, miners have experienced a sharp decline in their daily revenues, dropping from $79 million on March 6 to $29 million on July 3.
This reduction in revenues has led to some mining activities ceasing, contributing to further declines in hashing power.
According to CryptoQuant, miners are facing a 63% drop in daily revenues due to the halving event and reduced transaction fees, which now account for only 3.2% of total revenues.
Current indicators of miner capitulation are comparable to those observed in December 2022, which marked the market bottom.
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