Bitcoin Hash Rate Falls 4% Amid Miner Stress: What Does It Mean for the Price

Bitcoin's network hash rate experienced its sharpest decline in nearly two years, falling 4% over the last 30 days, coinciding with increased price volatility and a 9% price slide, indicating mounting stress among miners as profits dwindle. This contraction was attributed both to Bitcoin's price weakness and external factors, specifically the forced shutdown of approximately 400,000 mining machines in China's Xinjiang province, which eliminated about 1.3 GW of capacity. Despite poor current profitability, investment firm VanEck suggests this miner capitulation could be a "bullish contrarian signal." Historical data since 2014 shows that forward Bitcoin returns tend to be stronger when the hash rate contracts. Furthermore, technical analysis, such as a confirmed 3-day bullish divergence for Bitcoin, supports the potential for a market bottom formation.

(Source：BeInCrypto)