Bitcoin hash rate drops to the level seen during FTX bankruptcy, analyst says market may have bottomed

The "drop" in Bitcoin's hash rate has fallen to its lowest level since December 2022, after the bankruptcy of FTX. Some specific institutions and analysts use this as evidence to suggest that the cryptocurrency market may have bottomed out.

Bitcoin Hash Rate Plummets

According to data from CryptoQuant, the decline rate of Bitcoin's real hash rate is currently at -7.6%, indicating that the price of cryptocurrency assets may have bottomed out.

This argument is supported by BTC exchange reserves, Miner Position Index (MPI), and reserves, all of which suggest that selling pressure is relatively low.

However, the blockchain explorer Blockchain.com shows that Bitcoin's hash rate is still at a level similar to that of February this year, with the only difference being that the decline rate of Bitcoin's real hash rate is close to that of the period when FTX went bankrupt initially.

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Mining Companies in a Tough Spot

In early June, Charles Edwards, founder of the crypto hedge fund Capriole, also pointed out signs of a market bottom regarding the fluctuation in Bitcoin's hash rate.

His developed Bitcoin Hash Ribbons indicates a slowdown in hash rate, which often serves as a buy signal.

However, Bitcoin data analyst Willy Woo recently mentioned that the process of miners capitulating might take longer:

The market does not make new highs until the weaker miners are forced to shut down operations, a phenomenon that often occurs in the weeks following past halving events, but the capitulation phase of miners in this cycle seems to be more prolonged.

Previously, mining company CleanSpark emphasized that the market dynamics have changed after the launch of ETFs, and many publicly listed mining companies will be forced to consolidate, resulting in the emergence of four major winners among mining companies.

Countdown to Bitcoin Halving! CleanSpark CEO Bullish on Post-Halving Developments, Names Four Major Winners Among Mining Companies