The "drop" in Bitcoin's computing power has dropped to the lowest level since December 2022 and the bankruptcy of FTX. Certain institutions and analysts use this as an argument to believe that the cryptocurrency market may have bottomed out.

Bitcoin computing power plummets

According to CryptoQuant data, the rate of decline in Bitcoin’s real hash rate is now -7.6%, suggesting that the cryptocurrency asset’s price may have bottomed.

Supporting this argument are BTC exchange reserves, the Miner Position Index (MPI), and reserves, which are all indicators that selling pressure has become lower.

However, the block explorer Blockchain.com shows that Bitcoin’s computing power is still at the level of about February this year, but the rate of decline in Bitcoin’s real computing power is close to that of the original FTX bankruptcy period.

(Miners take a breath! Report: Bitcoin computing power and mining difficulty may decline in the summer, and competition will slow down)

The decline in computing power from December 2022 to the present puts mining companies in a difficult situation

In early June, Charles Edwards, founder of the crypto hedge fund Capriole, also pointed out that the market had shown signs of bottoming out in response to the fluctuations in Bitcoin’s computing power.

Its development of Bitcoin Hash Ribbons reflects a slowdown in computing power, which is often a buy signal.

However, Bitcoin data analyst Willy Woo recently pointed out that the process of miners surrender may take longer:

The market cannot reach new highs before weak miners are forced to shut down operations. This phenomenon has often occurred in the weeks after halving events in the past, but the miner capitulation phase of this cycle seems to be more lengthy.

Hash Ribbons’ 30-day EMA is declining and crossing over with the 60-day EMA.

Mining company CleanSpark has previously emphasized that market dynamics have changed after the launch of ETFs, and many listed mining companies will be forced to consolidate, resulting in the birth of four major winners among mining companies.

(Countdown to Bitcoin halving! The CEO of mining company CleanSpark is optimistic about the follow-up development of halving and named the four winners)

This article Bitcoin computing power dropped as much as FTX went bankrupt, analysts: the market may have bottomed out, first appeared on Chain News ABMedia.