Bitcoin Miners In Critical Phase Amid Profit Slump and BTC Sell-off

banner-image

🚀 Stay Ahead with AltcoinDaily.co! 🌐

Bitcoin miners are navigating a critical phase of capitulation, where their profitability is significantly declining amid a widespread sell-off of Bitcoin (BTC). According to a recent analysis on X, CryptoQuant highlighted that the current metrics measuring miner capitulation are approaching levels similar to those seen during the market bottom following the FTX crash in late 2022. 

Miner capitulation occurs when mining operations become unprofitable, forcing miners to sell their holdings to cover operational costs. This can create additional downward pressure on Bitcoin’s price, exacerbating the sell-off. 

Likewise, the situation indicates that Bitcoin is nearing a bottom, similar to the post-FTX crash scenario. This could signal a buying opportunity for investors, as historical patterns suggest a possible price rebound following miner capitulation. However, the cryptocurrency market remains highly volatile, and such predictions carry inherent risks.

  🌟 Unlock Crypto Insights with AltcoinDaily.co! 💰

Bitcoin Records Largest Drop in Mining Difficulty

As reported in May, Bitcoin mining difficulty fell by 5.7%, marking the highest negative adjustment since December 2022 when the difficulty fell by 7%. Notably, this recent negative difficulty adjustment is correlated with a 10% decline in Bitcoin’s hash rate since the previous difficulty adjustment on April 24. This is evidenced by a drop from a seven-day moving average of 639.58 EH/s to 578.74 EH/s.  

Meanwhile, the average block times increased to 10 minutes and 36 seconds before the adjustment. The dip in hash rate resulted in Bitcoin’s hash price plunging to an all-time low of $50 per PH/s per day ($0.05 per TH/s per day) on April 29, simultaneous with BTC’s price retracement below the $63,000 level.

Global Bitcoin Network Sees Decline

The global Bitcoin network experienced a decline recently, with 443 active ATMs switched off within the last 40 days. According to data from Coin ATM Radar, 227 crypto ATMs were removed from the global network, within the past five days. This comes after 107 Bitcoin ATMs were removed from operations in June, ending the 10-month trajectory of month-on-month increases in net installation.

 🦂 AltcoinDaily.co is your trusted source for the latest in crypto news and insights. 🚀

Notably, Europe and the United States have played a major role in the global decline of Bitcoin ATMs. The United States lost 182 ATMs in June and 239 ATMs in just the first week of July. Likewise, Europe follows behind with 29 ATMs shut down within the first week of July.

Another factor could also be the recent decline seen in BTC’s price. Within the past week, BTC has declined by 4.84% to trade at $57,934.64 per coin, according to CoinMarketCap’s data.

 🔍 Your Crypto News Hub: AltcoinDaily.co! 🌐

July 23, 2024

Asset management firm Bitwise has pledged a total of 10% of..

July 23, 2024

With no central authority formally supervising their use as a payment..

July 23, 2024

Coinbase Exchange has been upgraded from "Buy" by Citi analysts as..

ads-image ads-image