This year has been stormy for BTC, as the recent winter storm 'Fernan' in the US has caused many Bitcoin mines to temporarily halt operations.
In which Foundry USA (the largest mining pool in the US) has seen a reduction of about 60% in hashrate in just a few days. It is estimated that nearly 200 EH/s went offline, causing the Bitcoin block creation rate to slow down to an average of about 12 minutes/block instead of the usual 10 minutes.
The main reason is widespread power outages and miners actively reducing electricity consumption to avoid putting pressure on the power grid, as more than 1 million people in the US were affected by the outages.
In this context, the market is declining sharply, but according to on-chain data, the real bottom may still not have appeared.
The NUPL (Net Unrealized Profit/Loss) indicator reflects the 'unrealized' profit/loss level of the entire market, which is currently decreasing but still above 0. In previous cycles, major bottoms for Bitcoin typically only formed when NUPL fell into negative territory, meaning most investors fell into a state of loss and were forced to 'capitulate'.
In the opposite direction, the Delta Growth Rate (comparing Market Cap and Realized Cap) has turned negative, indicating that speculative cash flow is withdrawing and the market is beginning to enter a phase of accumulation based on real value, rather than FOMO.
In summary, the market may still hurt a bit more. But just like in previous cycles, long-term holding buying opportunities usually only appear after most investors lose patience. Has the bottom really been reached this time when the market, and especially $BTC , is suffering too much pain like this?
