Bitcoin Miner Capitulation
"When the 30-day mining power average drops below the 60-day average indicates miners are capitulating, selling their holdings to cover costs and switching off their hardware. That indicator just flipped into minor capitulation territory recently."
ℹ️ In shortWhen the 30-day mining power average drops below the 60-day average, it signals miner capitulation, where miners sell holdings and shut down hardware to cover costs.
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For informational purposes only. Not investment, financial, legal or tax advice. Full disclaimer
… ratively in the sense mining is a business with a high fixed cost and revenue denominated entirely in Bitcoin, which miners sell for cash. When the price drops far enough, the least efficient miners start shutting off machines because the electricity cost exceeds the mining reward that produces a very specific signal on the hash ribbons indicator. When the 30-day mining power average drops below the 60-day average indicates miners are capitulating, selling their holdings to cover costs and switching off their hardware. That indicator just flipped into minor capitulation territory recently. And then something else happened. A recovery cross appeared in early January, the moment when the 30-day average crossed back above the 60-day, indicating that the worst of the minor selling pressure and the worst of the minor capitulation is ending. Historically, that specific crossover occurring after a period of minor shutdowns and a forced sel …
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