Core

Rune

Bitcoin

April

Bitcoin miners are facing significant economic pressures, resulting in a major “capitulation” similar to the levels seen during the FTX exchange collapse in 2022. According to Oluwapelumi Adejumo of BeInCrypto, the Bitcoin mining hashrate has dropped by 7.6% this month. This decline follows Bitcoin’s recent <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a>, which cut miner rewards to 3.125 BTC, according to <a href="https://beincrypto.com/bitcoin-miners-capitulation-ftx-levels/" rel="noopener noreferrer nofollow">Beincrypto</a>.
<figure class="wp-block-image"><img src="https://lh7-us.googleusercontent.com/docsz/AD_4nXftF09bEHtT4NHWPG1AeYrMNZfuCWgr4Ij8B7KJHjnWs7BJ8B04LB6Gt2it0W4WmgSff1Im7ymoWQ49_8FayJAYUIymnPfFzZ8IQVs2STpTX8TkFirSLpMBGDRE98f4ZXvSBOMHtWjuZdW5GKby9WYTgwZn?key=APLzgIEH5rcVrKjwGcwD3w" alt="">
</figure>
Miner capitulation occurs when operational costs, including <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/" rel="noopener noreferrer nofollow">electricity</a> and <a href="https://ultramining.com/hardware/" rel="noopener noreferrer nofollow">hardware</a>, exceed the revenue from mining Bitcoin. In response, many miners are shutting down their operations. CryptoQuant data shows this trend, with Bitcoin mining hashrate mirroring levels from the 2022 FTX collapse.
Additionally, reduced network activity has significantly cut miners' revenues. Daily Rune transactions have plummeted from a peak of over 753,000 on April 23 to 21,861 on June 29, marking a 90% decrease. Consequently, total miner earnings from Rune transactions have fallen below 2 BTC this past week, down from over 1,000 BTC on April 20.&nbsp;
Facing these challenges, miners have intensified their selling activities. Last week that miners offloaded approximately 30,000 BTC, valued at $2 billion.
To diversify revenue streams, miners are increasingly turning to artificial intelligence (AI) and other Proof-of-Work (PoW) assets. Companies like <a href="https://ultramining.com/news/en/bitcoin-mining-giant-core-scientific-prepares-for-post-bankruptcy-comeback/" rel="noopener noreferrer nofollow">Core Scientific</a> and <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/" rel="noopener noreferrer nofollow">Hut 8</a> have secured significant <a href="https://ultramining.com/news/en/liquidstack-secures-funding-to-boost-eco-friendly-bitcoin-mining-in-the-u-s/" rel="noopener noreferrer nofollow">funding</a> for AI expansion. <a href="https://ultramining.com/news/en/marathon-digital-to-boost-energy-efficiency-with-s19-xp-miners/" rel="noopener noreferrer nofollow">Marathon</a> Digital, the largest BTC mining company, has announced its entry into mining <a href="https://ultramining.com/news/en/vipera-tech-launches-profitable-new-kaspa-miners-ks3-ks3l-3000-daily-earning-potential-revolutionizes-crypto-mining/" rel="noopener noreferrer nofollow">Kaspa</a>, a PoW project, having mined 93 million <a href="https://ultramining.com/news/en/vipera-tech-launches-profitable-new-kaspa-miners-ks3-ks3l-3000-daily-earning-potential-revolutionizes-crypto-mining/" rel="noopener noreferrer nofollow">KAS</a>, valued at approximately $15 million as of June 25.

Bitcoin Miner Capitulation Hits Levels Seen During FTX Collapse

Ultramining_Eng

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