While Bitcoin continues to experience sharp declines due to many events, it fell by 4% in the last 24 hours to $ 58,350.
At this point, while investors were waiting for BTC to rise again, CryptoQuant announced a bottom signal for Bitcoin.
According to CryptoQuant, the capitulation of miners indicates that Bitcoin has historically seen a bottom in prices.
CryptoQuant stated that, according to data, Bitcoin miners gave signals of surrender and sold their BTCs.
CryuptoQuant analysts revealed that miners are starting to show signs of miner capitulation, possibly shutting down their underperforming machines and selling BTC to hedge their exposure.
CryptoQuant said two signs of miner capitulation are declining hashrate and mining revenue per hash, both of which have fallen significantly this month.
Hashrate is the mining power in the Bitcoin network, and hash price refers to the income miners get from a unit of hashrate.
“Bitcoin miners’ capitulation metrics are approaching the same level as the market bottom formed after the FTX crash in late 2022.
The hash rate has fallen 7.7% since the halving, and the hash price is near all-time lows.
Miners are also experiencing a decline in daily revenue: From $79 million on March 6, their revenue dropped to $29 million today. This led to miners shutting down their equipment and a corresponding drop in hash rate.
Moreover, after Bitcoin’s halving, old processors are no longer as profitable as new generation machines. This is likely causing some miners to disconnect their machines from the network.”
As CryptoQuant points out, miner capitulation has also historically been viewed by many analysts as a signal of a bottom in prices. Because during the FTX collapse in November 2022, there were signs of surrender by miners, and the price of Bitcoin bottomed at $ 15,000 during the FTX collapse, and then the price started to rise.
*This is not investment advice.
