Are Bitcoin Miners Approaching Saturation as Prices Fall Below 60000

CoinDesk reports:
Signs of capitulation among Bitcoin miners are emerging. This phase is marked by miners ceasing operations or selling portions of their Bitcoin reserves.
Interestingly, historically, this process has coincided with Bitcoin price bottoms, followed by the asset’s potential recovery into much-needed uptrends.
Signs of Bitcoin Miner Capitulation
Since the recent halving, network hash rates have dropped 7.7% from their peak on April 27. According to the latest report from CryptoQuant, this decline suggests that less efficient miners may have shut down equipment due to decreased profitability.
CryptoQuant’s Miner Revenue Sustainability Index shows that since the second day after Bitcoin’s halving in 2024, April 20, miner earnings have notably dwindled,
with daily revenue plummeting by 63% from $79 million on March 6 to the current $29 million, where transaction fees comprise just 3.2% of total revenue, marking the lowest share since April 8.
Average mining revenue per hash (hash price) has also lingered near historic lows at $0.049 per second, slightly above the historical low of $0.045 reached on May 1. Additionally, miners have been transferring Bitcoin out of wallets at a faster rate, with daily outflows surging to levels not seen since May 21, suggesting potential sell-offs.
The current phase of miner capitulation mirrors a 7.7% hash rate decline observed in December 2022, marking the bottom cycle post-FTX crash. Historically, such significant drops have been associated with conditions near price bottoms.
Darkest Before Dawn?
Further validating the price bottom theory, Bitcoin’s trading price on Coinbase has significantly declined, a sign that the asset may be setting the stage for the next rally.
David Lawant, research director at Falcon, recently mentioned this in a post on X, questioning whether it’s “always darkest before the dawn.” The executive emphasized that the last time Coinbase’s premium was this negative, it was followed by a massive rebound from October 2023 to March 2024.
Thus, the current discounts may foreshadow a much-needed rebound.