🚨 BITCOIN MINERS GIVING UP AS PROFITS DRY UP AMID SELLOFF 🚨
💡 CryptoQuant analysts reveal Bitcoin miners are approaching "capitulation" as profit margins tighten post-halving and BTC hovers close to $50,000. This state mirrors the market bottom post-FTX crash in late 2022, potentially signaling a market bottom for BTC. 💡
📉 Signs of Capitulation 📉
🔍 Miner capitulation happens when miners scale back operations or sell their mined Bitcoin to stay afloat or hedge their exposure. Over the past month, Bitcoin's price has dropped 13% from $68,791 to $59,603, intensifying signs of miner distress.
📉 One critical indicator is the significant drop in Bitcoin's hashrate, which has fallen 7.7% to a four-month low of 576 EH/s after hitting a record high on April 27. This drop mirrors a similar hashrate decline in late 2022, when Bitcoin’s price bottomed at $15,500 before surging over 300% in the following 15 months.
🔗 "Bitcoin miner capitulation mirrors December 2022 levels with a 7.7% hashrate drop, similar to post-FTX collapse conditions. Such declines often signal potential market bottoms." - CryptoQuant
🔍 Hashrate Analysis 📊
📉 Bitcoin’s hashrate decline indicates reduced computational power securing the network, a sign of miners shutting down rigs due to unprofitability. This pattern of miner capitulation suggests a potential market bottom, akin to previous cycles.
📉 Miner Profit/Loss Sustainability 📊
💸 Since the halving, miners have faced extreme underpayment, as seen in the miner profit/loss sustainability indicator. Daily revenues have plummeted 63% from $79M on March 6 to $29M, with transaction fees now only contributing 3.2% of total daily revenues—the lowest share since April 8.
Are we headed towards another "Crypto recession"?
Yes/No? Let me know in the comments!