Bitcoin miners are showing significant signs of capitulation, reaching levels reminiscent of the market bottom after the FTX collapse in late 2022, according to CryptoQuant. The daily revenue for miners has dropped dramatically from $79 million on March 6, 2024, to $29 million today, following the cryptocurrency's halving earlier this year. The hashrate, a measure of computational power in the Bitcoin network, has also decreased by 7.7% since the halving as inefficient miners shut down their equipment.
Bitcoin's price currently stands at $60,300, having declined by 3% on Wednesday and experiencing a 13% drop over the past 30 days. Despite this decline, the $60,300 level has served as crucial support since April. Historical data suggests that Bitcoin may bounce back towards the $70,000 mark from this region.
CryptoQuant's analysis points out that the combination of a plunging hashrate and significantly reduced mining revenue are key indicators of miner capitulation. The hashprice, or revenue per unit of hashrate, is nearing all-time lows. This financial strain has led to a 63% decline in daily revenues due to reduced transaction fees, which now constitute only 3.2% of total revenue.