CryptoQuant Reports Bitcoin Miners’ Capitulation

Bitcoin miners have begun shutting down inefficient equipment and selling reserves, indicating signs of capitulation, according to a report by CryptoQuant.

Experts noted that such periods are historically associated with price lows.

They highlighted that daily miner revenue has decreased from $79 million on March 6 to $29 million currently. The share of fees in revenue has fallen to 3.2%, the lowest since April 8. Prior to the halving, the hype around Ordinals and Runes brought cryptocurrency miners “tens of millions” of dollars.

The network’s hash rate has declined by 7.7% following the block reward halving in April. This is the largest drop since December 2022, when the market bottomed after the FTX collapse.

According to CryptoQuant, daily outflows from miners’ wallets have reached their highest levels since May 21, indicating probable sales, experts believe.

“In reality, some large mining companies have started using their reserves to generate profits and hedge risks,” analysts stated.

In late April, CryptoQuant’s founder and CEO Ki Young Ju found no signs of miner capitulation. A similar view was expressed in June by Glassnode analyst James Check, although he acknowledged significant issues facing cryptocurrency miners.

Conversely, on-chain analyst Ali Martinez and Hash Ribbons indicator creator and Capriole Investments founder Charles Edwards reached the opposite conclusion.