Another reason for the sell off of Spot BTCs is due to the miners in big trouble. The miners are now producing only half as much BTC as before (due to the halving) but still using the same amount of electricity, so a lot of them are shutting down, because they are no longer profitable to operate. And this is why we see a big drop in Hash Rate, down 7.6%, it means that 7.6% of those unprofitable miners have turned off their mining machines. Since they are closing down, they are leaving the $BTC business so they would sell their inventory, which is the BTCs they mined the last 2 or 3 months. The bankrupt miners would sell these (before the Mt Gox guys) and get some cash to pay back their debt. But like in any mining business, whether it be gold or copper, when the miners are going bankrupt, then it is usually a sign that Bottom is coming. Because if some Miners stop mining, then there is less supply coming to the market. (For BTC, the supply does not change, itâs the mining difficulty that gets adjusted to be easier). But the phenomenon still applies to BTC, we saw last time Hash Rate was down 7.6% when BTC bottomed at 15K. That was Nov 2022. So just based on the Hashrate going down this much, I do think BTC is near levels that would find major support, historically speaking.
