- The crypto market witnessed $300M in liquidations within the past 24 hours as Bitcoin dropped below $60,000.
- Bitcoin Miners Capitulate as 7.7% Hashrate Drop Post- Halving Spells Possible Market Bottom.
- Market downturn linked to FTX collapse, upcoming Mt. Gox rehabilitation, and investor panic selling amid negative news.
Over the past 24 hours, the crypto market witnessed slightly over $300 million in liquidation. This major price sell-off directly affected Bitcoin since it dropped below the $60,000 mark. As the market remains in red, many investors are concerned about the potential for a larger correction.
At $58,884.61, Bitcoin has dropped by 3.22% in the last 24 hours. This price point has been acting as a critical support since April and Bitcoin has rebounded from this region before. Despite the recent downturn, historical data suggests that Bitcoin may once again recover from this level, as it has done before.
Miner Capitulation and Market Bottom
The symptoms of capitulation displayed by Bitcoin miners are frequently linked to market bottoms. According to data from CryptoQuant, the newest halving event reduced the network hash rate of Bitcoin by 7.7%. This drop in mining rewards, without a respective increase in price, has many miners under extreme financial pressure. Historically, miner capitulation cycles occur during major market events or protocol changes, and the current situation appears to be following this pattern.
Source: CoinDesk on X
Impact of Major Market Events
Subsequently, after the fall of the FTX cryptocurrency exchange towards the end of 2022, there has been an observable market downturn with visible drops in the price and network hash rate of Bitcoin.
This halving incident is again very stressful for the mining industry and creates several speculations for further market corrections. Popular trader Daan Crypto Trades (@DaanCrypto) predicts that the upcoming Mt. Gox rehabilitation program could introduce additional selling pressure, potentially leading to another
Many experts regard this to be a transitory current weakness that ultimately turns out to represent a buy-the-dip opportunity. In numerous instances, Bitcoin and the broader cryptocurrency market have returned to life from some of the most daunting stress periods. According to most market analyses and experts, the current packing conditions are rough and regular rotations within cryptocurrency markets.
Reasons for the Market Dip
Several factors have contributed to the recent dip in the overall crypto market. Key reasons include financial strain on miners due to reduced block rewards and insufficient price increases post-halving, the impact of significant events like the FTX collapse and the upcoming Mt. Gox rehabilitation, and general market anxiety leading investors to react to negative news with panic selling.
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