Bitcoin (BTC) Miners Facing Capitulation as Hashrate Declines Post-Halving

Nearly a month after the fourth Bitcoin halving took place, the first signs of miners’ revenues decreasing are slowly emerging with one clear indicator being the drop in the network hash rate.

The recent decline in this metric potentially indicates miner capitulation, where less efficient miners are quitting due to decreased profitability.Earlier, the 30-day moving average of the hash rate reached its peak at 630 exahashes per second , but now it’s at 606 EH/s. Although this decrease is relatively small and brief, it’s notable because the hash rate usually goes up, indicating a pattern shift.“Miner capitulation” refers to less efficient miners exiting the process.

CryptoQuant’s analysis stresses the Hash Ribbons indicator, which functions under the assumption that these conditions frequently coincide with substantial price declines for BTC, providing a chance to profit from price drops.However, it is important to note that this doesn’t happen right away after the initial capitulation signal from Hash Ribbons, as the process of miner capitulation is steady.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.

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