It appears that Bitcoin (BTC) miners are nearing a state of capitulation, a phenomenon often associated with market bottoms. This comes after Bitcoin, the largest cryptocurrency by market capitalization, has seen a decline of 13% over the past month and 2.7% over the past week.
At the time of writing, the price of Bitcoin stands at $60,300, having decreased by 2.3% in the last 24 hours. This price level serves as a significant support level since April, and the cryptocurrency has bounced off this range three times before returning to $70,000.
CryptoQuant, a data analysis company, suggests that a similar scenario may occur soon, as there are several indicators pointing to miner capitulation following a significant selling pressure period.
One of the key indicators for this capitulation is the significant decline in both hash rate and hash price.
Hash rate, which represents the total computational power used for Bitcoin mining, has dropped by 7.7% since the recent halving event. At the same time, hash price, which measures miners’ revenue per unit of hash rate, is near its historical lows.
Furthermore, miners have experienced a sharp decline in their daily revenues, which have decreased from $79 million on March 6th to $29 million on July 3rd.
This revenue decrease has led to the cessation of some mining activities, contributing to further decline in hash power.
According to CryptoQuant, miners are facing a 63% decline in daily revenues due to the halving event and the reduction in transaction fees, which now account for only 3.2% of total revenues.
The current indicators of miner capitulation are comparable to those observed in December 2022, which marked the market bottom.