Bitcoin miners are facing financial challenges and are selling their BTC to cover costs. This capitulation is similar to what happened in December 2022, after the FTX collapse.
Impact on Bitcoin Price
Selling Pressure: Miners selling their BTC can increase selling pressure, potentially driving down the price.
Market Recoveries: Periods of miner capitulation have historically preceded market recoveries.
December 2022 Bottom
The last time the Network True Hashrate Drawdown reached -7.6% was in December 2022, which marked the bottom of the previous cycle. This suggests that Bitcoin may be nearing a price rebound.
Current Bitcoin Price
As of writing, Bitcoin is trading around $60,889, with a 0.2% increase in the past 24 hours. However, it has declined over 5% in the past week.
