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Bitcoin miner capitulation rates are approaching the level of the market bottom after the FTX crash in late 2022.
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Miners’ daily revenue has dropped from $79 million to $29 million following the Bitcoin halving earlier this year.
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The hashrate has dropped 7.7% since the halving as inefficient miners turn off their equipment.
Bitcoin {{BTC}} miners are showing signs of capitulation, an event typically associated with a market bottom, after the world’s largest cryptocurrency suffered a 13% drop over the past 30 days.
Bitcoin is currently trading at $60,300 after dropping 3% on Wednesday. The level has served as critical support since April, with Bitcoin bouncing off the region three times before heading back towards $70,000.
According to data provider CryptoQuant, this is likely to happen again in the near future as there are numerous signs pointing to capitulation after a period of intense selling pressure.
Two signs of miner capitulation are declining hashrate and mining revenue per hash (hashprice), both of which have dropped significantly this month, with hashrate down 7.7% since the halving and hashprice approaching an all-time low. Hashrate is the mining power in the Bitcoin network, and hash price refers to the revenue miners earn from a unit of hashrate.
Miners are also taking a hit to their daily revenue, which dropped from $79 million on March 6 to $29 million today. This has led to miners shutting down equipment and the subsequent drop in hashrate.
“Miners are facing a 63% drop in daily revenue due to the halving and the drop in transaction fees to 3.2% of total revenue,” CryptoQuant said in a report.
Mining capitulation levels are now comparable to those seen in December 2022, the market low point following the demise of FTX.
Read more: Bitcoin hashrate may finally slow as miners face scorching summer heat waves
