Bitrabo Editorial
Recent on-chain data reveals that Bitcoin Hash Ribbons continue to suggest that miners are facing significant challenges, with no signs of respite in sight.
Miner Capitulation Status According to Bitcoin Hash Ribbons
In a post on X, Maartunn from CryptoQuant shared insights on the current trend indicated by the Bitcoin Hash Ribbons. These ribbons represent two moving averages of the Bitcoin mining hashrate.
The mining hashrate reflects the total computational power miners contribute to the BTC network, presenting a snapshot of the miners’ situation and involvement in blockchain validation.
An increase in the hashrate indicates growing miner participation, while a decrease suggests miners may be leaving the network due to profitability concerns. This metric plays a crucial role in understanding miner behavior and its potential impact on Bitcoin.
The Hash Ribbons indicator consists of the 30-day and 60-day moving averages of the hashrate. A crossover where the 30-day MA falls below the 60-day MA signifies miner capitulation, while the reverse signals a return to stability.
A chart depicting the Bitcoin Hash Ribbons trend over the past year shows the 30-day MA dipping below the 60-day MA in May, marking the beginning of miner capitulation.
Factors such as bearish market sentiment and the fourth Halving event, which halves BTC block rewards every four years, have contributed to this trend. The reduced block rewards due to the Halving directly impact miner revenue, especially with the USD exchange rate affecting their earnings.
Although there was a brief crossover indicating a potential recovery, the Hash Ribbons have since reverted to signaling ongoing capitulation, indicating sustained pressure on miners with uncertain relief prospects.
Bitcoin Price Update
Bitcoin is currently trading around $56,200, experiencing a decrease of more than 10% in the past week.