Will Bitcoin's Bull Run Soon Begin Again?

Bitcoin miners have capitulated to levels similar to December 2022, according to a recent X post by CryptoQuant chief of research Julio Moreno. Following FTX's demise in December 2022, the preceding cycle likewise hit rock bottom around that time.

A low point for the cryptocurrency sector was reached when the Sam Bankman-Fried-led exchange collapsed, leading to widespread fear and sell-offs. The massive selling pressure ultimately led to Bitcoin's precipitous price drop.

A 7.6% drop in the Network True Hashrate was a hallmark of the Bitcoin miners' surrender at that moment. Network True Hashrate Drawdown is now at -7.6% as per Julio Moreno's article on X.

Miners' difficulties to sustain operations in a tight financial position are reflected in the Network True Hashrate Drawdown measure, which analyzes the decline in computing power committed to Bitcoin mining. Several possible effects on the price of Bitcoin might result from the accompanying miner surrender and the drastic drop in the Network True Hashrate.

Because of this, selling pressure on Bitcoin may rise if miners decide to unload their holdings, as has happened in recent weeks. The result may be a precipitous decline in the value of Bitcoin as a result of this.

Historical market recoveries have been preceded by times of substantial miner surrender. In addition, the article notes that in December 2022, when the Network True Hashrate Drawdown was at its lowest point, the Bitcoin market hit cycle bottom. Based on this, it seems like Bitcoin could be ready for a price recovery shortly.

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