Bitcoin Hashrate Declines to Levels Seen During FTX Bankruptcy Analyst Suggests Market May Have Bottomed
The “decline” in Bitcoin’s hash rate has dropped to its lowest level since FTX’s bankruptcy in December 2022, leading certain institutions and analysts to argue that the cryptocurrency market may have hit bottom.
Bitcoin’s hash rate has experienced a rapid decline, with CryptoQuant data showing a decrease of -7.6%, indicating that the price of cryptocurrency assets may have bottomed out. This argument is also supported by the BTC exchange reserve, the Miner Position Index (MPI), and reserves, all of which suggest lower selling pressure.
However, the Blockchain.com block explorer shows that Bitcoin’s hash rate is still maintained at around the level of February this year, only the decline rate of real hash rate is similar to that of the FTX bankruptcy period.
In early June, Charles Edwards, the founder of crypto hedge fund Capriole, also pointed out signs of a bottom in the market due to the volatility of Bitcoin’s hash rate. His developed Bitcoin Hash Ribbons indicate a slowdown in hash rate, which is often a buying signal.
However, Bitcoin data analyst Willy Woo recently suggested that the process of miners surrendering may take longer. The market is unable to reach new highs until weak miners are forced to shut down operations, a phenomenon that often occurs in the weeks following past halving events. However, the surrender stage of miners in this cycle seems to be more prolonged.
The 30-day moving average of Hash Ribbons is declining and crossing the 60-day moving average.
Previously, mining company CleanSpark emphasized that the market dynamics have changed after the introduction of ETFs, and many listed mining companies will be forced to consolidate, resulting in the emergence of four winners in the mining sector.
FTX Bitcoin hash rate
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FTX liquidators expect creditors to recover 119 to 143 cents per dollar, discussing restructuring plans on June 25.
