Bitcoin’s hash rate has plunged to its lowest level since December 2022, post the bankruptcy of FTX, prompting certain institutions and analysts to argue that the cryptocurrency market may have bottomed out.
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Bitcoin Hash Rate Plummets
Miners Facing Tough Conditions
Bitcoin Hash Rate Plummets
According to CryptoQuant data, the current decline rate in Bitcoin’s actual hash rate is -7.6%, indicating that the prices of cryptocurrency assets may have bottomed out.
Supporting this argument are indicators such as BTC exchange reserves, Miner Position Index (MPI), and reserves, all of which suggest reduced selling pressure.
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However, the blockchain explorer Blockchain.com shows that Bitcoin’s hash rate remains around the levels of February this year, albeit with a decline rate similar to that during the FTX bankruptcy period.
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Hash Rate Decrease Since December 2022
Miners Facing Tough Conditions
In early June, Charles Edwards, founder of crypto hedge fund Capriole, also pointed out signs of a market bottom regarding fluctuations in Bitcoin’s hash rate.
His developed Bitcoin Hash Ribbons indicate a slowdown in hash rate, often a buy signal.
However, Bitcoin data analyst Willy Woo recently noted that the process of miners capitulating may take longer:
The market tends to see highs only after weak miners are forced to shut down operations, a phenomenon often occurring several weeks after past halving events. However, the current cycle of miner capitulation appears to be more prolonged.
Hash Ribbons’ 30-day moving average declines with the 60-day moving average crossover.
Previously, miner CleanSpark emphasized that market dynamics have changed post-ETF introduction, with many listed miners being forced to consolidate, thereby creating four major winners among mining companies.
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FTX
Bitcoin
Hash Rate
Further Reading
“The Next FTX,” Non-Profit Organization’s New Advertisement Slams Tether with Million-Dollar Campaign
FTX Liquidator Expects Creditors to Retrieve 119 to 143 Cents per Dollar, Discusses Restructuring Plan on 6/25