Bitcoin miner capitulation comes close to FTX crash: What happened in the past?
Bitcoin hash rate has decreased by 7.7 percent since May. This decline is almost at the same level as the decline experienced with the FTX crash. According to CryptoQuant, such declines generally indicate that potential tipping points have been reached in terms of prices.
The sharp decline in Bitcoin price also puts great strain on Bitcoin miners. Some miners are unplugging their devices because the price has fallen to a level where they can no longer make a profit. This is called “miner capitulation” in the crypto literature.
Miner capitulation has recently approached levels seen after the massive FTX crash of 2022. According to blockchain analysis company CryptoQuant, hash rate, which expresses the total hardware power used to produce Bitcoin, has decreased by 7.7 percent since May. The same decrease was also seen after FTX's bankruptcy.
CryptoQuant underlines that such declines often indicate that potential bottoms have been reached for prices.
Bitcoin dropped to $15,500 in November 2022, when FTX went bankrupt, and rose again from the beginning of 2023. The number one cryptocurrency approached $74,000 in its bumpy journey that continued until last March.
-Uzmancoin
