CryptoQuant: BTC miner capitulation indicator is close to the bottom level after the FTX crash, which may indicate that the market has bottomed out

Odaily News The CryptoQuant report believes that the BTC 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 make a living or hedge risks. In the past month, the price of BTC fell from $68,791 to $59,603, during which time multiple signs of capitulation appeared. One of the signs is a significant decline in BTC computing power, which fell 7.7% to a four-month low of 576 EH/s. CryptoQuant analysts pointed out that this is similar to the situation when BTC prices bottomed out at $15,500 at the end of 2022, when BTC rose more than 300% in the next 15 months. In addition, since the halving, miners income has dropped significantly, with daily income falling by 63%, from $79 million on March 6 to the current $29 million, and transaction fee income has fallen to 3.2%, the lowest since April 8. Miners were forced to use their reserves to generate revenue, with daily miner outflows at their highest since May 21, suggesting they may be selling their BTC reserves. The combined selling of miners, whales, and governments of multiple countries has caused BTC prices to retreat, hitting 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 its all-time low of $0.045 on May 1. Financial services firm Cantor Fitzgerald reported earlier that if the BTC market price falls to $40,000, some of the worlds largest mining companies will be forced to surrender, highlighting the plight of the mining industry. (Cointelegraph)