Are Bitcoin Miners Capitulating Amid the Drop Below $60K?
The Bitcoin network is exhibiting signs of miner capitulation, a stage characterized by miners stopping operations or selling part of their Bitcoin reserves. Historically, this process has been linked to Bitcoin prices bottoming out, followed by a much-needed uptrend.
Signs of Bitcoin Miner Capitulation:
Since the recent halving, the network hash rate has decreased by 7.7% from its peak on April 27. According to CryptoQuant, this decline indicates that less efficient miners have likely shut down their equipment due to negative profitability. CryptoQuant’s miner profit/loss sustainability indicator shows that miners have been significantly underpaid since April 20, the day after the 2024 Bitcoin halving.
Daily revenues have dropped by 63%, from $79 million on March 6 to $29 million currently, with transaction fees comprising just 3.2% of the total revenue, the lowest share since April 8. The average mining revenue per hash (hash price) is also near all-time lows at $0.049 per EH/s, just above the record low of $0.045 reached on May 1. Additionally, miners have been transferring Bitcoin out of their wallets at increased rates, with daily outflows hitting their highest volume since May 21, indicating potential selling.
