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Bitcoin Miners Capitulate as Hashrate Plunges to New Low

Bitcoin miner capitulation has reached levels comparable to December 2022, with a 7.6% drawdown, according to crypto analyst Julio Moreno.

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Source: CryptoQuant

The Bitcoin hash price has reached ATH as miners struggle with rising costs. According to IntoTheBlock, Bitcoin miners have offloaded over 30,000 BTC ($2 billion) in June.

This mass sell-off is largely attributed to the April halving event, which reduced block rewards by half. Such events typically lead to miner capitulation, where mining becomes unprofitable, forcing miners to liquidate their Bitcoin holdings to cover expenses.

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Source: gassnode

Bitcoin’s hashrate has decreased by roughly 15% over the past month, reflecting the overall computational power that miners contribute to the network. 

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The hashrate represents the number of calculations (hashes) performed per second to validate and secure transactions. Hashing involves generating a random alphanumeric code and attempting to guess it, or something very close to it. 

Source: IntoTheBlock

The hash rate is a critical metric for gauging the security level of the Bitcoin network and the mining difficulty miners face to earn block rewards. A decline in hash rate suggests reduced network security and increased challenges for miners, impacting the overall health of the Bitcoin ecosystem.

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