On-Chain Data Points Second Wave of Miner Capitulation

Historically, miners have had a huge impact on the BTC price. Right now, miner capitulation could put further selling pressure on Bitcoin price, which has had a historically bad November, with a 21% drop. On-chain data indicates the start of the second wave of miner capitulations, which may indicate lower lows for the BTC price, analysts said. As analyst Dylan LeClair noted, the Bitcoin hash rate is starting to drop.

According to the statements made, the 7-day moving average hash rate is currently 13.7% away from its all-time high. Mining difficulty is expected to adjust by around 9% in a week, which should slightly reduce the pressure on miners, at least in the short term. However, miner margins have been and continue to narrow greatly since June, the first capitulation event in this cycle. Despite this, the hash rate has soared to an all-time high until recently. This increased mining difficulty and the price drop associated with FTX pushed the hash rate to its lowest level since late 2020.

As Charles Edwards of Capriole Investments noted, the hash strips confirmed the start of capitulation. “Triggered by the $10 billion FTX event and the ensuing crash, Bitcoin miners are now bankrupt and the hash rate is trending down,” Edwards said. used his words. In addition, the chart “Bitcoin miner net position change” shows that miners have been selling aggressively in the last month. Will Clemente, from Reflexivity Research, said in his statements on the subject, “Combined with the decline in the hash rate and today’s hashband bear cross, this really shows that we are in the phase of miner capitulation.”

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