Bitcoin Rises to Nearly $63,000 Amid Sharp Hashrate Decline
Bitcoin has surged to almost $63,000, despite a sharp drop in hashrate. This drop takes the hashrate back to levels last seen in December 2022, around the time the FTX exchange collapsed.
1️⃣ Current Hashrate Data
According to CryptoQuant, the True Bitcoin Hashrate Drawdown is at -7.6%, indicating a possible price bottom.
Other metrics like Bitcoin Exchange Reserve, Miners Position Index (MPI), and Bitcoin Miner Reserve also point to low selling pressure.
2️⃣ Miner Capitulation
Indicators suggest miners are starting to capitulate, signaling potential buying opportunities.
Charles Edwards from Capriole noted that the Bitcoin Hash Ribbons indicator is signaling a buy. This compares the 60-day moving average of the hashrate against a 30-day average.
Market analyst Will Woo agrees, saying new market highs won't happen until weaker miners shut down operations.
3️⃣ Hashrate Drawdown Trends
The hashrate drawdown has fallen to levels seen after the FTX collapse in December 2022.
Miner withdrawals have decreased by up to 90% since the halving, indicating reduced selling pressure and likely continued price rise for Bitcoin.
4️⃣ Post-Halving Challenges
A report by Cantor Fitzgerald highlights the challenges miners face ahead of the April 2024 halving event.
High mining costs and decreased rewards could make some mining companies unprofitable if Bitcoin’s price drops to $40,000.
Stay tuned for more crypto insights! 👍
Disclaimer: This post is for informational purposes only and not financial advice.
