Bitcoin (BTC) miners are showing signs of capitulation, an event that is typically tied to a market bottom after the world’s largest cryptocurrency endured a 13% plight over the past 30 days.
Bitcoin is currently trading at $60,300 after sliding by 3% on Wednesday. This level has acted as a critical support since April, with bitcoin bouncing three times from this region before heading back towards the $70,000 mark.
Two signs of miner capitulation are dwindling hashrate and mining revenue by hash (hashprice), both of which are down significantly this month, with hash rate plunging by 7.7% since the halving at hashprice nearing all-time lows. Hashrate is the mining power in the Bitcoin network, and hash price refers to the revenue miners earn from a unit of hashrate.
Miners are also experiencing a hit to their daily revenue, which fell to $29 million today from $79 million on March 6. This has led to miners turning off equipment and the subsequent drop in hashrate.
“Miners have been hit by a 63% decline in daily revenues due to the halving and the collapse of transaction fees to 3.2% of total revenue,” CryptoQuant said in a report.
Miner capitulation levels are now comparable with those in December 2022, which was the market bottom following the demise of FTX.
This article was originally published by a www.coindesk.com . Read the Original article here. .
Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. BitcoinNews.best does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
