Latest data #CryptoQuant suggests that the #Mining Bitcoin industry is experiencing a capitulation, a potential indicator that the Bitcoin price may be approaching a local bottom. The market intelligence platform analyzed the metrics associated with miners who secure the Bitcoin network in exchange for the newly released $BTC .
One of the key signs of capitulation is the decline of #hashrate Bitcoin, which represents the total computing power securing the network. The hash rate fell 7.7% to 576 exahash per second (EH/s), the lowest level in the previous four months, after peaking on April 27 at 623 EH/s.
Historically, such hashrate drawdowns have been correlated with conditions where the price of Bitcoin has bottomed out. For example, a similar 7.7% decline in hashrate occurred in December 2022, when the price of Bitcoin reached $16,000 and then rose more than 300% over the next 15 months.
This recent hashrate decline follows Bitcoin's fourth cyclical halving in April, which saw the number of coins paid out to miners cut in half. According to CryptoQuant's miner profit/loss sustainability indicator, this halving has left many miners in the red since April 20th.
Consequently, miners have shut down mining equipment that is not profitable. Thus, after the halving, when both Bitcoin's base block rewards and transaction fee income were much higher, daily mining revenues fell by 63%.
Amid this financial pressure, Bitcoin miners are moving coins out of their on-chain wallets at an accelerated pace. This suggests that they can sell their reserves #Bitcoin . CryptoQuant noted that daily miner outflows rose to the highest volume since May 21.
This selloff by miners, along with selling by #Whales and national governments, contributed to the recent pullback in Bitcoin's price in June. The decline also impacted Bitcoin's "hash price," a measure of miners' profitability per unit of computing power. Currently, the average hash mining income is $0.049 per EH/s, just above the all-time low of $0.045 reached on May 1st.
At the time of writing, Bitcoin price is $57,879.00 and over the past 24 hours it has traded at $39,884,697,701. This indicates a price decline of 5.40% over the past seven days and 3.78% in the previous 24 hours.
These signs indicate that the Bitcoin mining industry is under significant financial stress. However, the historical correlation between the hashrate decline and the Bitcoin price bottom offers some hope for a potential recovery. As mining companies adjust to the post-halving environment, market participants will be closely watching for signs of a price rebound.$BNB
