Bitcoin miner revenue is showing signs of bottoming out, a trend historically linked with the onset of new bull markets. This trend, emphasized by Plan B’s recent chart, suggests a potential rally in Bitcoin prices.

Recent data from blockchain analytics firm CryptoQuant reveals that Bitcoin miners are undergoing capitulation, a phase marked by declining hash rates and increased selling pressure. The hash rate, which indicates the total computational power of the Bitcoin network, has dropped by 7.7% since its peak in April. This decline mirrors patterns seen in previous market bottoms, such as in December 2022, which was followed by a 300% increase in Bitcoin’s price over the next 15 months​.

The recent halving event has exacerbated the financial strain on miners, reducing their rewards by half and leading to a 63% drop in daily mining revenues. This reduction in profitability has forced many miners to sell their Bitcoin reserves, resulting in a significant increase in daily miner outflows.

Furthermore, Plan B’s chart illustrates the recurring pattern where Bitcoin miner revenue bottoms out, followed by substantial price increases. This chart, widely regarded in the cryptocurrency community, adds weight to the argument that the current phase of miner capitulation could signal the end of the bear market and the beginning of a new bullish cycle​.

The combination of declining hash rates, reduced mining revenues, and increased selling pressure from miners suggests that Bitcoin may be nearing a price bottom. Historical data supports the notion that such periods of miner capitulation often precede significant price recoveries, indicating that the market may be on the cusp of a new bull run.

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