Bitcoin miners are close to capitulation, but this phase has also coincided with BTC price bottoms and trend reversals.
CryptoQuant analysts say Bitcoin miners are showing signs of “capitulation” as profit margins tighten in the post-halving climate and BTC price falls close to $50,000.
Miner capitulation is a process in which some miners reduce their operations or sell a portion of their mined Bitcoin and reserves to stay afloat or” earn yield or hedge their Bitcoin exposure.” One of those signs is a significant decline in Bitcoin’s hashrate – the total computational power that secures the Bitcoin network – which has experienced a 7.7% decline to hit a four-month low of 576 EH/s after hitting a record-high hashrate on April 27.
The CryptoQuant report also noted that for most of the period since the halving, miners have been “extremely underpaid,” as evidenced by the miner profit/loss sustainability indicator.As a result, miners have seen a 63% decline in daily revenues since the halving when both Bitcoin’s base block rewards and transaction fee revenue were higher.
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