Bitcoin miners show signs of capitulation

Bitcoin miners ready to capitulate: what does it mean for the market? ⛏️

Bitcoin hashrate has been growing steadily for a year, quickly recovering after the Chinese mining ban and constantly hitting all-time highs ever since.
A rising hashrate means more security for Bitcoin, but also more electricity expenses for the miners.

So the cost of mining rises ?, while the price of Bitcoin falls ? – this is not a good equation for miners, who at some point must decide to turn off the machines or unload their accumulated Bitcoin to get cash to keep going. It looks like this point has come, as on-chain analytics firm Glassnode reports an increase in Bitcoin transfers from miners to exchanges, suggesting that miners were going to sell more bitcoins than before.

The 7-day average miners to exchanges’ flow has hit a 7-months high of almost 9.5 BTC/hour, last seen at the end of the bull run. Miners’ intentions now are much different, but the market did not leave them much choice, and after a long wait they capitulate.

Why is it important? Miners are one of the most stubborn and steady-handed categories of Bitcoin sellers: their investment is long-term and they are well aware of the cyclic character of the Bitcoin market. Miners capitulation usually comes long after retail paper-hands had sold their coins and hedge funds had their leveraged positions liquidated, which would suggest that the total market capitulation is not far.

And after capitulation, an accumulation starts ☀️