On July 6, CryptoQuant released a report saying that the Bitcoin miner capitulation indicator is close to the market bottom level after the FTX crash in 2022, which may indicate that the BTC market has bottomed out. Miner capitulation refers to some miners reducing operations or selling mined BTC to maintain their livelihoods or hedge risks.
Over the past month, Bitcoin’s price has fallen from $68,791 to $59,603, with multiple signs of capitulation emerging. One of these signs is a significant drop in Bitcoin’s hash rate, which fell 7.7% to a four-month low of 576 EH/s.
CryptoQuant analysts noted that this is similar to what happened when BTC bottomed out at $15,500 at the end of 2022, when BTC rose more than 300% over the next 15 months.
In addition, since the halving, miner revenue has dropped significantly, with daily revenue down 63% from $79 million on March 6 to $29 million currently, and transaction fee revenue has dropped to 3.2%, the lowest since April 8. Miners are forced to use their reserves to generate revenue, with daily average miner outflows reaching the highest level since May 21, indicating that they may be selling their Bitcoin reserves.
