This may be the main reason for this decline:

Miners' income has decreased, and they have hedged their risks by selling mining machines and BTC, leading to a chain reaction of the current decline.

But this reaction from miners is both a risk and an opportunity! Let me sort out the logic for you:

1. Current situation of miners:

(1) Income is significantly reduced.

Since April, miners’ daily revenue has decreased from $79 million on March 6 to $29 million currently.

(2) Hash rate decreases

After hitting an all-time high on April 27, the network hash rate dropped by 7.7%, reflecting that miners may have disconnected older machines.

(3) Active supply decreases and transaction volume decreases

The active 90-day supply of Bitcoin has decreased significantly, meaning there are fewer Bitcoins circulating in the market.

2. Miners’ coping strategies

(1) Looking for more efficient processors to improve efficiency

(2) Find cheaper energy and reduce mining costs

3. Long-term impact

Such moves by miners are often related to the bottoming out of prices.

For example, after the FTX crash in November 2022, a significant drop in hash rate corresponded with Bitcoin’s price falling below $17,000, before the price began to recover.

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