Bitcoin Showing Signs of Miner Capitulation Post-Halving: What Does It Mean for You? 📉
Since Bitcoin’s latest halving event on April 19, which cut the reward for mining a new bitcoin block in half, the world’s largest cryptocurrency has begun showing signs of miner capitulation as miners likely turn off underperforming machines and begin to sell Bitcoin to hedge their exposure.
Signs of Miner Capitulation 👀
- CryptoQuant notes various signs of miner capitulation, which historically has indicated a bottom in prices
- For most of the period since April, miners have been “extremely underpaid” according to CryptoQuant’s metrics
Revenue Decline 📉
- Total daily revenues for miners have decreased from $79 million on March 6 to $29 million currently
- Revenue from transaction fees has fallen to only 3.2% of the total daily revenues, the lowest share since April 8
Mining Machine Disconnect ⛏️
- Older processors are no longer as profitable as newer-generation machines
- Miners are disconnecting machines from the network, leading to a 7.7% drawdown in the network’s hashrate
Miner Outflows 💰
- Spikes in miner outflows indicate that some miners may be selling their coins to hedge their exposure
Bottoming-Out Scenario 📉
Historically, miner capitulation has been associated with a bottom in prices. The last comparable hash rate drawdown occurred following the collapse of FTX in November 2022, after which Bitcoin’s price began its ascent.
Current Bitcoin Price 💸
At publication time, the price of Bitcoin is hovering around $60,000, having fallen about 3.5% in the past 24 hours.
Hot Take: What Should You Do Next? 🚨
As a crypto investor, it’s essential to monitor the signs of miner capitulation and its potential impact on Bitcoin’s price. Consider the following steps:
- Stay informed about mining trends and the overall health of the Bitcoin network
- Monitor the price of Bitcoin closely and be prepared for potential volatility
- Consult with financial advisors or experts in the field for personalized investment advice
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