It
is
no
secret
that
Bitcoin
miners
are
currently
experiencing
significant
financial
stress,
especially
following
the
completion
of
the
fourth
halving
event.
As
a
result,
these
vital
network
participants
are
being
forced
to
offload
their
BTC
holdings
to
offset
the
increasing
operational
costs.
Interestingly,
the
latest
on-chain
data
shows
that
the
Bitcoin
market
is
experiencing
a
wave
of
capitulation
from
miners
that
is
reminiscent
of
December
2022,
barely
a
month
after
the
FTX
collapse.
The
question
now
is
—
what
happened
the
last
time
and
how
could
it
impact
the
current
cycle?
Is
BTC
Ready
To
Resume
Its
Bull
Run?
In
a
recent
post
on
X,
CryptoQuant’s
head
of
research
Julio
Moreno
revealed
that
the
Bitcoin
miner
capitulation
has
hit
levels
comparable
to
December
2022.
December
2022
also
represented
the
bottom
of
the
previous
cycle
after
the
collapse
of
FTX.
The
fall
of
the
Sam
Bankman-Fried-led
exchange
marked
a
low
point
for
the
crypto
industry,
triggering
widespread
panic
and
sell-offs.
Ultimately,
this
enormous
selling
pressure
potentiated
a
sharp
decline
in
the
price
of
Bitcoin.
At
the
time,
the
capitulation
among
the
Bitcoin
miners
was
characterized
by
a
7.6%
drawdown
in
the
Network
True
Hashrate.
According
to
Julio
Moreno’s
post
on
X,
the
Network
True
Hashrate
Drawdown
is
also
currently
at
-7.6%.
A chart showing BTC's Network True Hashrate Drawdown and price | Source: jjcmoreno/X
The
Network
True
Hashrate
Drawdown
metric
calculates
the
reduction
in
the
computational
power
dedicated
to
mining
Bitcoin,
reflecting
miners’
struggles
to
maintain
operations
in
a
tight
financial
condition.
Naturally,
the
significant
drawdown
in
the
Network
True
Hashrate
and
the
associated
miner
capitulation
have
several
potential
impacts
on
the
Bitcoin
price.
As
seen
over
the
past
few
weeks,
these
can
lead
to
an
increase
in
selling
pressure,
as
miners
look
to
sell
their
BTC
holdings.
This
could
put
serious
downward
pressure
on
the
price
of
Bitcoin,
driving
its
value
to
lower
levels.
At
the
same
time,
periods
of
significant
miner
capitulation
have
historically
preceded
market
recoveries.
Moreover,
as
highlighted
in
the
post,
the
Bitcoin
market
reached
the
cycle
bottom
the
last
time
(December
2022)
the
Network
True
Hashrate
Drawdown
was
at
this
point.
This
suggests
that
BTC
could
really
be
primed
for
a
price
rebound
soon.
Bitcoin
Price
At
A
Glance
As
of
this
writing,
the
price
of
BTC
stands
around
$60,889,
reflecting
a
0.2%
increase
in
the
past
24
hours.
The
premier
cryptocurrency
is
still
deep
in
the
red
on
the
weekly
timeframe,
with
an
over
5%
decline
in
the
past
week.
The price of BTC on the verge of $62,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured
image
from
iStock,
chart
from
TradingView
Go to Source
Author: Opeyemi Sule
