TechFlow news, market intelligence firm CryptoQuant reported that the BTC miner capitulation indicator is approaching the market bottom levels seen after the FTX collapse in 2022, potentially signaling the arrival of a BTC market bottom. Miner capitulation refers to miners reducing operations or selling mined BTC to sustain themselves or hedge risks. Over the past month, BTC price has dropped from $68,791 to $59,603, during which multiple signs of capitulation have emerged.
One sign is a significant decline in the BTC hash rate—the total computing power fell by 7.7% to a four-month low of 576 EH/s. CryptoQuant analysts noted this resembles the situation at the end of 2022 when BTC price hit a bottom of $15,500, after which BTC rose over 300% in the following 15 months.
In addition, since the halving, miner revenues have sharply declined, dropping 63% from $79M on March 6 to the current $29M. Transaction fee revenue now accounts for only 3.2% of total income, the lowest since April 8. Miners are being forced to tap into their reserves for liquidity, with daily miner outflows reaching the highest level since May 21, indicating they may be selling BTC holdings.
Selling pressure from miners, whales, and national governments has collectively driven BTC prices lower, falling to a four-month low of $53,499 on July 5. The BTC hash price (miner profitability per unit of computing power) is currently $0.049 per EH/s, close to the historical low of $0.045 set on May 1.
Earlier, financial services firm Cantor Fitzgerald reported that if the BTC market price falls to $40,000, some of the world's largest mining companies would be forced into capitulation, highlighting the dire conditions facing the mining industry.
