NewsletterOn-chain Data: Bitcoin Miner Capitulation Begins, More Pain Ahead for BTC?
Amid the collapse of crypto exchange FTX, there’s massive selling pressure seen for Bitcoin (BTC) and the broader crypto market. The Bitcoin price has corrected more than 21% this month as it turns out to be the worst November for Bitcoin so far.
Bitcoin miners have suffered the maximum during this massive price correction. On-chain data suggests that the Bitcoin miner capitulation has officially begun hinting at further pain ahead in the price of BTC. Bitcoin miner capitulation is a scenario that occurs when the Bitcoin price drops wherein it becomes difficult for some miners to hold the BTC profitably. As a result, they are forced to sell and move off the network.
On the other hand, the Bitcoin hash rate has started to turn over. On a 7-day moving average, the BTC hashrate is 13.7% off its all-time high. The next Bitcoin mining difficulty adjustment, a week from now, shall see -9% adjustment. This is clearly the sign of an early stage of Bitcoin miner capitulation.
In another chart below, we can see that Bitcoin miners have been selling aggressively over the last month. This coupled with the collapse of the crypto exchange FTX has led to further selling pressure on the BTC price.
More pain Ahead With Bitcoin Miner Capitulation?
Several analysts have been pointing out that the contagion of the FTX collapse will further spread to other crypto firms. This could lead to further bleeding for Bitcoin and the overall crypto space. Analysts are expecting that as the FTX contagion spread, the BTC price could touch as low as $5,000.
The Bitcoin bottom could take another 3-6 months from now. Popular crypto analyst IncomeSharks reported: “Bitcoin – When it’s outside factors that drop the price it usually can form V shape reversals (Covid). When it’s internal events (FTX, 3AC, Luna), we most likely see bottoms that take 3 to 6 months to form. Expect slow and boring, spot over leverage”.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Peter Brandt Warns Bitcoin Could Dip Below Strategy’s Average Purchase Price as MSTR’s mNAV Falls
- Balancer Hack Update: Exploiter Begins Selling Stolen Tokens After Protocol Recovered $4.1M
- Breaking: US SEC Issues Guidance on Pending Crypto ETFs as Government Shutdown Ends
- Bitcoin ETFs Sees Second Largest Outflows in History as BTC Drops to $95k
- Crypto Market Crash: Here’s Why Bitcoin, ETH, SOL, ZEC, & Other Altcoins Are Falling
- Zcash Price Defies Market Crash: Will Shrinking Exchange Netflows Keep ZEC Rallying?
- XRP, DOGE & ADA Price Outlook: How Low Can These Altcoins Drop Next?
- Ethereum Price Sheds 10% but Lands on the $3,150 Accumulation Base — Is a Buy-the-Dip Bounce Ahead?
- Is Shiba Inu Price Set for Recovery Amid Partnership with Unity Nodes to Expand SHIB Utility?
- Top 3 Reasons Pi Network Price May Surge Despite the Incoming Token Unlock
- Solana Price Gears Up to $180 as DApp Revenue and DEX Volume Surge
