2024

Argo

Bitcoin

April

The Bitcoin hashrate drawdown, a metric that measures dips in the relative computing power of the Bitcoin network, has dropped to levels not seen since December 2022, directly following the collapse of FTX during the depths of the previous bear market.
According to data from CryptoQuant, the true Bitcoin hashrate drawdown metric now stands at -7.6%, indicating a potential price bottom for the decentralized asset.
The case for a market bottom is supported by other metrics, such as the Bitcoin Exchange&nbsp;<a href="https://cryptoquant.com/community/dashboard/667dba52a3f5b8210d512872?e=667dba74931dcb63ae9965e6" target="_blank" rel="noopener nofollow">Reserve</a>, the Miners Position Index (<a href="https://cryptoquant.com/community/dashboard/667dba52a3f5b8210d512872?e=667df407931dcb63ae996621" target="_blank" rel="noopener nofollow">MPI</a>) and the Bitcoin Miner&nbsp;<a href="https://cryptoquant.com/community/dashboard/667dba52a3f5b8210d512872?e=667df4835cf1f812622b7dcc" target="_blank" rel="noopener nofollow">Reserve</a>,&nbsp;each suggesting low selling pressure.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/a5296486-25c2-4dad-9fd1-4ae6cd51b0fe.png" alt="" title="">
 <figcaption style="text-align: center;">
 A chart showing hashrate drawdowns from December 2022 to present day. Source: CryptoQuant
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="miner-capitulation-and-the-current-cycle">Miner capitulation and the current cycle</h2>
Over the last few weeks, several indicators suggested that miners are beginning to capitulate, signaling potential buying opportunities for Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>).
At the beginning of June, Charles Edwards, founder of crypto hedge fund Capriole, argued that the<a href="https://cointelegraph.com/news/bitcoin-hash-ribbons-first-buy-signal-25k-btc-price"> Bitcoin hash ribbons</a> indicator developed by his firm was flashing a buy signal reflective of the relative slowdown in network computational power.
Related:&nbsp;<a href="https://cointelegraph.com/news/bitcoin-sentiment-drop-signals-bottom">Bitcoin social sentiment decline may signal market bottom</a>.
Hash ribbons measure the network’s hashrate by comparing the 60-day moving average of the Bitcoin hashrate against a 30-day average. When the 30-day average sinks below the 60-day average it indicates a relative decrease in hash power.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/20b9b8e2-fedf-4d7e-81de-f0aec649d00d.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 The hash ribbons indicator. Source: Capriole
 </figcaption>
</figure>
Market analyst Will Woo echoed Edwards by explaining that the market won’t reach new highs until weak miners are forced to&nbsp;<a href="https://cointelegraph.com/news/bitcoin-price-bouce-will-occur-when-weak-hands-capitulate-and-hashrate-recovers">shutter their operations</a>&nbsp;— a phenomenon that traditionally occurs in the weeks following a halving event but seems to be dragging on during the current cycle.
More recently,&nbsp;<a href="https://cointelegraph.com/news/bitcoin-miner-sell-pressure-weakening-btc-withdrawals">Bitcoin miner withdrawals</a> dropped by up to 90% post-halving, indicating that selling pressure from miners has been minimized and that Bitcoin’s price will continue to rise.
<h3 data-ct-non-breakable="true" id="post-halving-realities-and-the-bitcoin-mining-business">Post-halving realities and the Bitcoin mining business</h3>
In anticipation of the April 2024 halving event, financial services firm Cantor Fitzgerald released a report highlighting the challenges miners face following the decreased block subsidy.
The report identified 11 mining companies, including Marathon Digital, Hut8 and Argo Blockchain, potentially in danger of&nbsp;<a href="https://cointelegraph.com/news/bitcoin-miner-major-profitability-cantor-fitzgerald-research"></a><a href="https://cointelegraph.com/news/bitcoin-miner-major-profitability-cantor-fitzgerald-research">becoming unprofitable due to high mining costs</a> and lower rewards.
According to that report, if the market price of Bitcoin plummets to $40,000, some of the world’s biggest mining companies would be forced to capitulate, highlighting the predicament of the mining industry post-halving.
Magazine:&nbsp;<a href="https://cointelegraph.com/magazine/bitcoin-senegal-why-how-african-country-using-btc/">Bitcoin in Senegal: Why is this African country using BTC?</a>

Bitcoin hashrate drawdown dips to December 2022 levels

Table of Contents

Cointelegraph

Alte articole publicate pe 1 iul. 2024

Sony subsidiary rebrands to S.BLOX, expands crypto trading

Bitfinex Securities to Launch New Bonds on Liquid Network

MoonBag Tops the Best Presale in 2024, Surging Past Internet Computer and Cardano

Crypto Industry Lost $176.2M to Hackers in June 2024 — PeckShield Report

UFC Launches Digital Fan Experience on Solana

Top AI Tokens To Stack Ahead of The Upcoming Bull Rally!

Join our free newsletter for daily crypto updates!