Bitcoin

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
The capitulation of <a href="https://u.today/bitcoin-chances-of-waking-up-to-200000-btc-growing-higher-samson-mow" rel="noopener noreferrer nofollow">Bitcoin</a> miners was not expected on the cryptocurrency market. However, it could have been the perfect solution to the current state of the digital gold. Here's why it could become a fuel for the <a href="https://x.com/ki_young_ju/status/1801325959074775481" rel="noopener noreferrer nofollow">growth</a> of BTC.
Over the last 18 months, <a href="https://u.today/jpmorgan-issues-major-bitcoin-warning-as-btc-price-plunges" rel="noopener noreferrer nofollow">Bitcoin's</a> hashrate has been on an uptrend, which is representative of good security on the network; however, data shows that the trend was breached, indicating that some miners are throwing in the towel or, rather, quitting mining altogether.
Miner capitulation manifests itself through a visible decline in the hashrate, which gauges the processing power dedicated to the mining of Bitcoin. <img alt="BTCUSD Chart" data-entity-type="file" data-entity-uuid="012e9db2-2617-45d1-a382-8c0f83f82c7c" src="https://u.today/sites/default/files/inline-images/image_895.png"><a href="https://www.tradingview.com/" rel="noopener noreferrer nofollow">BTC/USD Chart by TradingView</a>
The chart from CryptoQuant shows a decline in the true hashrate of the network. Otherwise constantly rising, the true hashrate is seeing a decline. From the lower band of the hashrate, we can effectively say that the computational power is on the decline, a deviation from the increase we had seen in the last one and a half years.
This could be due to the increasing cost of operations and lowered profitability for miners, with the halving that did not kick in, in terms of price performance. As the price of Bitcoin continues moving down, it becomes complicated for mining operations to remain profitable in their activities. Obviously, it led to some of the miners switching off their rigs completely, while others reduced their mining <a href="https://u.today/bitcoin-is-exponential-gold-fidelity-exec-says" rel="noopener noreferrer nofollow">activities</a>.&nbsp;&nbsp;
A decline in the hashrate generally leads to a period of readjustment for Bitcoin. Capitulation by miners makes mining difficulty adjust to an easier track for the remaining miners to mine blocks. This adjustment can lend itself to efficiency and even lowering of the costs for active miners.
Major price action has, in the past, appeared after hashrate drops. Miners' capitulation may currently reduce selling pressure. With declining selling pressure, the price of an asset can stabilize and even rise if demand now outweighs supply.

Bitcoin Miners Are Capitulating: What's Happening?

U_Today

Other articles published on Jun 14, 2024

BlockDAG Clinches High-Profile Influencer Endorsement, Presale Climbs 1120%, Dwarfing PEPE Coin &...

Solana Set To Soar? Analyst Predicts Over 50% Surge For SOL If This Key Support Holds

Shareholders Accuse Elon Musk of Diverting Tesla’s Assets to Build His AI Venture, xAI

Earn More Than In A Bank With Special Programs From TFS Token

Blockwire, the New Crypto Press Release Distribution Service, Welcomes Content for Online Project...

SEC Chair’s Stance on Crypto Could Impact Biden’s Re-election Bid

Join our free newsletter for daily crypto updates!