The post Miner ‘capitulation’ in the Bitcoin network nears FTX implosion levels, CryptoQuant appeared on BitcoinEthereumNews.com.

Bitcoin’s latest halving event, on April 19th, reduced miner compensation for mining new blocks by half. Since then, the Bitcoin network has shown signs of miner capitulation, according to CryptoQuant. Miners began to turn off inefficient mining equipment and sell their BTC. Also read: LayerZero price rising following Binance listing: 5 other new crypto listings to watch  CryptoQuant suggests the capitulation signs began shortly after Bitcoin’s periodic halving event. The data revealed that Bitcoin miners have been significantly “underpaid” since April 19th. CryptoQuant data revealed that the daily miner outflows declined to $29 million from a high of $79 million recorded on the 6th of March. Miners initially benefited from the inception of Bitcoin Ordinals and the Runes protocol. These protocols provided additional miner revenue worth millions in the form of network fees. In its first week, the Runes protocol alone generated 2,129 bitcoins worth $135 million. CryptoQuant data indicated that revenue generated from these protocols is now down to 3.2% of the total miner revenue and has been declining since April. Daily Bitcoin miner revenue: Source CryptoQuant The capitulation process has involved miners turning off inefficient equipment that no longer operates profitably. Bitfarms, a Canadian-based miner, announced on June 1st that it had replaced 39,000 miners with new efficient and profitable mining equipment. Bitcoin computational power drops with miner reserves at a 14-year low According to the blockchain analytics firm, Bitcoin hashrate hit a record high on April 27th but has since dipped by 7.7%. These figures represent a fall toward the four-month low. The declining hashrate is a result of a drop in miner participation triggered by miners switching off inefficient mining equipment.  The data also showed an increase in miner outflow activity. According to CryptoQuant, these outflow changes indicate possible Bitcoin liquidations from miners. The blockchain explorer also…

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Filed under: News - @ July 4, 2024 12:16 pm