Hitting bottom? Bitcoin computing power has retreated to the end of 2022, and miner withdrawals have dropped by 85%

Bitcoin mining status

1. Impact of halving:

   • The fourth halving was completed in April, and the block reward was reduced from 6.25 BTC to 3.125 BTC.
   • Miner fee income has dropped, with an average of less than 2 BTC/day.
   • Miners who have not upgraded their mining equipment will quit or suspend mining.

2. Hashrate decrease:

   • Bitcoin’s entire network hashrate dropped to 556.16EH/s, down 7% in the past 24 hours.
   • Hashrate dropped to its lowest level since December 2022.

3. Market interpretation:

   • QCP Capital believes that miners are forced to sell coins and limit the rise in Bitcoin prices.
   • CryptoQuant founder Ki Young Ju believes that the capitulation of small miners is a precursor to a bull market.
   • Analyst Will Woo said that Bitcoin price will rebound after the computing power recovers.

Conclusion:

The Bitcoin hash rate retracement is close to the historical low and is expected to gradually recover and may drive the currency price up.

Miner withdrawals reduced by 85%

With the cooling of the Bitcoin ecosystem and the halving event, Ki Young Ju said when answering the question "What is the situation of mining companies in terms of production costs": Bitcoin hash The price (hash price, income per unit of computing power) hit a record low. Many mining companies have slowed down investment in mining equipment, with some turning to mining other PoW tokens to hedge against market uncertainty. But this does not mean the end of the cycle. They are not bearish long term, in my opinion they are just hedging and waiting for buy side liquidity to return.

Jan Wuestenfeld, a Bitcoin-focused economist and mining expert, pointed out that the decline in hash prices since Bitcoin’s fourth halving in April has put tremendous pressure on inefficient miners. As this situation gradually weeds out inefficient miners and the cost of mining Bitcoin falls, miners still operating may not be eager to sell their Bitcoins in exchange for operating funds.

CryptoQuant data shows that on the 28th, the withdrawal volume of miner-related wallets dropped from more than 50,000 coins per day to less than 10,000 coins, a decrease of 85%, indicating that the selling pressure of miners is weakening, which also supports Bitcoin to some extent Coin price.

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