Bitcoin hashrate collapsed after 18-year uptrend

The Bitcoin hash rate has collapsed after an 18-month uptrend, signaling the start of a potential capitulation for Bitcoin miners.

After an 18-month uptrend, Bitcoin’s true hash rate has fallen to around 600 exahashes per second (EH/s). Hash rate is used to measure how difficult it is for miners to mine Bitcoin (BTC).

According to Ki Young Ju, founder and CEO of CryptoQuant, a breakout of an uptrend could indicate that some Bitcoin mining companies are selling their Bitcoin. He wrote in an article dated June 13:

“The 18-month upward trend in the Bitcoin hash rate has broken, indicating that some miners are giving up.”

The real hash rate of the Bitcoin network. Source: Ki Young Joo

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Did the miner really sell which took Bitcoin to $66,000?

Despite the decline in the Bitcoin hash rate, mining companies have not sold significant amounts of Bitcoin.

Flows from Bitcoin miners to cryptocurrency exchanges fell from a monthly peak of 15,470 BTC on May 21 to just 7,239 BTC on June 13, according to CryptoQuant.

Bitcoin: miner for exchange flow (total). Source Cryptoquante

However, the drop in Bitcoin price does not appear to be caused by the capitulation of miners. The price of Bitcoin fell from over $71,100 on June 5 to $66,800 currently, while daily flows from miners to exchanges continued to decline steadily.

Related: Bitcoin Whale Accumulation Reaches Pre-2020 Bullish Levels – Is Bitcoin Ready to Surpass $70,000?

Bitcoin miners surrender or old ASIC miners shut down?

The decline in Bitcoin’s real hash rate can also be attributed to mining companies shutting down older generation ASIC chip mining rigs, which have become unprofitable since Bitcoin’s fourth halving.

Meanwhile, Bitcoin’s total hash rate fell to 586,377 terahashes per second on June 12, according to data from

Total Bitcoin hash rate. Source:

This temporary drop was predicted by a report published on April 19 by CoinShares, which expects the hashrate to increase next year. According to the report:

“Our model predicts the hash rate will reach 700 exahashes by 2025, although after the halving it could decline by up to 10% as miners deactivate unprofitable ASIC hardware.”

The temporary reduction is attributed to increased Bitcoin mining costs due to the halving, as well as rising electricity costs.

Mining Bitcoin at home – is it time to start? Source: Cointelegraph

However, the profitability of mining operations depends largely on the cost of electricity paid by companies. The S19 Hashrate indicator.

“The S19 XP and M50S++ will operate at a loss if the retail cost increases > $0.09/kWh. > $0.08/kWh k The Pros & M50S+ will not be profitable. At $0.06-$0.07/kWh, the S19j Pro+, j Pros and M30S++ will struggle.

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