Bitcoin hash rate drops to December 2022 levels, suggesting price may have hit bottom

1. Decline in computing power:

According to information provided by data sources such as CryptoQuant, Bitcoin hashrate has dropped to its lowest level since December 2022. Specifically, the current real Bitcoin hashrate decline rate is -7.6%, which is a significant decrease and indicates that the network's computing power is slowing down.

2. Historical background and comparison:

December 2022 is the period when FTX collapsed and triggered the last bear market trough. The current decline in Bitcoin hash rate to levels seen during this period may mean that the market has experienced enough correction and may be nearing a bottom.

3. Support from other market indicators:

In addition to the decline in hashrate, multiple key market indicators are also showing signs of low selling pressure and a market bottom. For example, Bitcoin exchange reserves, the Miner Position Index (MPI), and Bitcoin miner reserves all show low selling pressure, which further supports the view of a market bottom.

4. Expert opinions and analysis:

Capriole founder Charles Edwards pointed out that the Bitcoin hash rate indicator sent a buy signal, which reflects the slowdown in network computing power and potential market bottom opportunities. Market analyst Will Woo believes that the market will not reach new highs before weaker miners are forced to shut down operations. This indicates that the market is undergoing a deep adjustment and may be about to usher in a new upward cycle.

5. Changes in the withdrawal amount of miners:

Withdrawals by Bitcoin miners dropped significantly after the halving, by as much as 90%. This change further reduced the selling pressure in the market and provided favorable conditions for the increase in Bitcoin prices.