Bitcoin Hashrate Decline Signals Miner Capitulation After 4th Halving
One month after Bitcoin’s fourth halving event, analysts are closely monitoring Bitcoin hashrate as a key indicator of miner sentiment. Recent observations suggest a noteworthy decline in hashrate. This change is prompting discussions about potential miner capitulation and its implications for the broader Bitcoin ecosystem.
#Bitcoin Miners Capitulation? Hash Ribbons Says Yes
“Periods of rapid declines in the hashrate are marked in green on the bitcoin price chart below, often indicating “miner capitulation.” – By @JA_Maartun
Full post https://t.co/DKGZvqvCSU
— CryptoQuant.com (@cryptoquant_com) May 15, 2024
Halting Hashrate and Miner Capitulation Post-Bitcoin Halving
According to insights shared by a CryptoQuant analyst, the 30-day moving average of Bitcoin’s hashrate has seen a decline from its peak of 630 exahashes per second (EH/s) to its current level of 606 EH/s. This shift in hashrate trajectory is particularly significant as it diverges from the typical post-halving pattern, where hashrate tends to increase steadily.
The analyst’s observations are underscored by the Hash Ribbons indicator, which historically correlates miner capitulation with declines in hashrate. The Hash Ribbons methodology operates on the premise that decreased hashrate often signals less efficient miners exiting the market, either by shutting down operations or relocating to more favorable conditions. Additionally, these miners may opt to sell recently mined Bitcoin to cover operational expenses, further impacting market dynamics.