🌪️ Bitcoin hash rate plummeted, miners panic selling? Is a market rebound in sight? 🌪️
Let’s pay attention to the news about Bitcoin’s computing power. Does the recent plunge in computing power remind you of the bear market in December 2022? At that time, FTX went bankrupt, the price of Bitcoin fell to less than $20,000, and miners panicked and sold.
Through observation of historical data, every major drop in Bitcoin’s computing power seems to be related to a large-scale sell-off by miners. Now, from May to July 2024, we are again witnessing a significant decline in hashrate, which coincides with the decline in hashrate at the end of 2022 when FTX went bankrupt.
Currently, Bitcoin's computing power is experiencing a similar plunge, which makes people wonder: Is the decline in computing power related to the halving of miners' income after the halving?
Some analysts believe that after the Bitcoin halving, the income of miners will be directly halved. If the price of Bitcoin fails to double, their profits will be affected. The current price of Bitcoin is around 60,000, but compared with before the halving, the income of many miners has been significantly reduced, but the expenses have not been reduced, which has led to some poorly managed miners facing the edge of bankruptcy. Therefore, these miners will choose to shut down their mining machines or even sell their Bitcoins, which is also the main reason for the decline in computing power.
But this is also the process of market self-adjustment. Only cleaning out those miners who are not operating well will actually be a good thing for the long-term development of Bitcoin. Because experienced miners will retain some working capital to survive this decline. Only when the market washes away these miners will Bitcoin be able to go to a higher place.
So, let’s pay close attention to market dynamics to see if this plunge in Bitcoin’s computing power will be the starting point for the next round of rise. The market is always full of surprises, let’s wait and see if Bitcoin can usher in a strong rebound!
