The "drop" in Bitcoin's computing power has dropped to the lowest level since December 2022 and the bankruptcy of FTX. Specific institutions and analysts use this as an argument to believe that the cryptocurrency market may have bottomed out.
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ToggleBitcoin computing power plummets
According to CryptoQuant data, the rate of decline in Bitcoin’s real hashrate is now -7.6%, indicating that the price of the cryptocurrency asset may have bottomed.
Supporting this argument are BTC exchange reserves, the Miner Position Index (MPI), and reserves, which all indicate that selling pressure has been low.
However, the block explorer Blockchain.com shows that Bitcoin’s computing power is still at the level of about February this year, but the rate of decline in Bitcoin’s real computing power is close to that of the original FTX bankruptcy period .
Mining companies in dire straits
In early June, Charles Edwards, founder of the crypto hedge fund Capriole, also pointed out that the market had shown signs of bottoming out in response to the fluctuations in Bitcoin's computing power.
The Bitcoin Hash Ribbons it developed reflect the slowdown in computing power, which is often a buy signal.
However, Bitcoin data analyst Willy Woo recently pointed out that the process of miners surrender may take longer:
The market cannot reach new highs before weak miners are forced to shut down operations. This phenomenon has often occurred in the weeks after halving events in the past, but the miner capitulation phase of this cycle seems to be more lengthy.
Mining company CleanSpark has previously emphasized that market dynamics have changed after the launch of ETFs, and many listed mining companies will be forced to consolidate, resulting in the birth of four major winners among mining companies.
