Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
Home»BITCOIN NEWS»Network hashrate plummets 20%
BITCOIN NEWS

Network hashrate plummets 20%

By Crypto FlexsMay 16, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Network hashrate plummets 20%
Share
Facebook Twitter LinkedIn Pinterest Email

After the halving, the world of Bitcoin continues to show changes. After its hashrate surged last April to celebrate block reward reductions, Bitcoin’s computational power has plummeted, falling 20% ​​in recent weeks.

Related Reading

This unexpected decline has sparked debate among analysts, with some noticing explosive sales and others urging caution.

Source: BitInfoCharts

Bitcoin: Hashrate Hiccup or Miner Exodus?

The hash rate, which measures the integrated processing power dedicated to securing the Bitcoin network, typically rises after a halving event as miners invest in more powerful equipment to compete for the reduced rewards.

But this time the trend defied expectations. Experts like Maartunn, an anonymous analyst at CryptoQuant, believe this is a sign of a potential “miner capitulation.”

Less efficient miners are now likely to throw in the towel. Halving, which cuts block rewards in half, has squeezed the profit margins of miners using older equipment. When these miners stop working, the hash rate drops.

Bitcoin is currently trading at $66.306. Chart: TradingView

Hash Ribbon Flash Warning Sign

Supporting Maartunn’s theory is a technical indicator called Hash Ribbons. This indicator tracks the difference between short-term and long-term hashrate averages. A growing gap means a decline in mining activity, potentially due to the exodus of less efficient miners.

The recent hash rate plunge has sparked a surge in Hash Ribbons. This is a sign of miner capitulation, which often coincides with historically low prices for Bitcoin.

Source: CryptoQuant

Are Bitcoin Miners Selling?

Further supporting the capitulation theory is the decline in Bitcoin miner holdings. This indicator tracks the amount of Bitcoin held in wallets associated with miners. Declining reserves mean miners can potentially offload mined coins to cover operating costs or exit the market altogether.

Is this a sign of undervaluation or a cyclical decline?

Maartunn interprets these signs as bullish indicators. Hash ribbons often indicate a good moment to buy, he argues. Supporting his claim is the MVRV (Market Value to Realized Value) ratio, which suggests that Bitcoin may be undervalued.

BTC 24-hour price action. Source: CoinGecko

This indicator compares the current market price to the average price at which all Bitcoins were acquired. Currently, a negative MVRV, such as Bitcoin, means the asset is trading below its historical cost basis, potentially indicating a buying opportunity.

Related Reading

Not everyone is aboard the surrender train.

But not all analysts agree. Some argue that hashrate declines may be temporary due to factors such as extreme weather events disrupting mining operations in certain regions.

Additionally, the period following the halving is generally one of adjustment for miners, and short-term hashrate fluctuations may not necessarily mean a large-scale exodus.

The post-halving Bitcoin landscape is still unfolding. The hashrate decline and other signs point to a potential buying opportunity, especially for long-term investors, but the situation remains fluid.

Featured image from Shutterstock, chart from TradingView

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Cardano founder says Chainlink quotes ‘ridiculous price’ to them.

September 3, 2025

The US government posts GDP data on Bitcoin block chain.

August 28, 2025

Ether ETF is a comeback of $ 280 million, with bitcoin leaked stripes hit on the 5th.

August 22, 2025
Add A Comment

Comments are closed.

Recent Posts

NOWPayments To Participate In SiGMA Europe Rome 2025

September 4, 2025

Web3 Enabler Announces Blockchain Payments V3.1 At Northeast Dreamin In Boston

September 4, 2025

Is XRP The Dark Horse Of The Cryptocurrency World? Earn 652 XRP Daily Using Invro Mining’s Smart Contract

September 4, 2025

TRX Was Early, ETH Set The Standard, BNB Built The Scale- Now SYC Brings The Next Evolution

September 4, 2025

Sign Up And Receive $500 Bonus, Ushering In A New Era Of Compliant And Secure Crypto Investment

September 4, 2025

Why experts say that 99%of the traders are wrong

September 4, 2025

ChainUp Named Double Finalist At Thomson Reuters’ ALB Pan-Asian Regulatory Awards 2025

September 4, 2025

Integrated security classes can accelerate the adoption of institutional passwords.

September 4, 2025

Binance explodes 466m LUNC with oblivion: revival play or special effect?

September 4, 2025

Cardano founder says Chainlink quotes ‘ridiculous price’ to them.

September 3, 2025

Acurast launches ‘Staked Compute’ and challenges AWS, Azure and Google Cloud using the distributed smartphone network.

September 3, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

NOWPayments To Participate In SiGMA Europe Rome 2025

September 4, 2025

Web3 Enabler Announces Blockchain Payments V3.1 At Northeast Dreamin In Boston

September 4, 2025

Is XRP The Dark Horse Of The Cryptocurrency World? Earn 652 XRP Daily Using Invro Mining’s Smart Contract

September 4, 2025
Most Popular

Ethereum price faces a critical test: Can $2,850 withstand the pressure?

April 19, 2024

The SEC is having a hard time making its case against Hex founder Richard Heart.

November 27, 2023

Weekly Update #34 – Password Tracking

January 8, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.