Massive selling pressure has been observed for Bitcoin (BTC) and the larger crypto market in the wake of the collapse of cryptocurrency exchange FTX. As this month turns out to be the worst November for Bitcoin so far, the price of the cryptocurrency has fallen by more than 21%.
In this severe market drop, bitcoin miners have suffered the most. According to on-chain data, the Bitcoin miner capitulation has formally started, indicating that the price of BTC will continue to suffer. When the price of bitcoin falls, some miners may capitulate because it becomes harder for them to keep the currency profitably. They are consequently compelled to sell and leave the network.
The Bitcoin hash rate, on the other hand, has started to fluctuate. The BTC hashrate is 13.7% behind its all-time high on a 7-day moving average. In a week, there will be a -9% adjustment to the Bitcoin mining difficulty. This is unmistakably a symptom of an early stage of capitulation among Bitcoin miners.
The graphic below shows that over the past month, Bitcoin miners have been selling furiously. Further selling pressure on the BTC price has been caused by this in addition to the collapse of the cryptocurrency exchange FTX.
Another three to six months may pass before Bitcoin reaches its bottom. IncomeSharks, a well-known crypto analyst, reported:
#Bitcoin – When it's outside factors that drop the price it usually can form V shape reversals (Covid). When it's internal events (FTX, 3AC, Luna), we most likely see bottoms that take 3 to 6 months to form. Expect slow and boring, spot over leverage. pic.twitter.com/qvACDSqMwJ
— IncomeSharks (@IncomeSharks) November 29, 2022