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Bitcoin miners capitulate as hashrate plummets to new low
Dan Burgin
Bitcoin Miner Capitulation Is Highest Since 2022 Market Crash
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Bitcoin miners’ capitulation reached levels comparable to December 2022, with a 7.6% drawdown, second to crypto analyst Julio Moreno.
Bitcoin hash rate hits ATH as miners struggle with rising costs. Bitcoin miners mined over 30,000 BTC ($2 billion) in June, according to IntoTheBlock.
This mass sell-off is largely attributed to the April halving event, which reduced block rewards by half. Such events typically lead to miners’ capitulation, where mining becomes unprofitable, forcing miners to liquidate their Bitcoin holdings to cover expenses.
Bitcoin’s hashrate has declined by about 15% over the past month, reflecting the overall computational power that miners contribute to the network.
Hashrate represents the number of calculations (hashes) performed per second to validate and secure transactions. Hashing involves generating a random alphanumeric code and trying to guess it, or something very similar.
The hash rate is a critical metric for evaluating the security level of the Bitcoin network and the mining difficulty that miners face to earn block rewards. A drop in hash rate suggests reduced network security and increased challenges for miners, impacting the overall health of the Bitcoin ecosystem.
About the author
Dan Burgin
Dan is a news editor and writer with 12 years of experience in finance and emerging technologies, with a strong focus on cryptocurrency. Covering a wide range of topics from fintech startups to artificial intelligence, he provides an in-depth overview of the current state of the cryptocurrency market, along with insights into its potential for future disruption.