Mining
Bitcoin Hashrate Decline Signals Miner Capitulation
Friday. July 19 at 6:00 AM
1 min. readIn early July, Bitcoin's hashrate dropped to levels not seen since the 2022 bear market, indicating miner capitulation. The fourth halving event in April reduced miner rewards, leading to decreased revenue. Bitcoin's price fell below $60,000 due to selling pressure and Mt. Gox repayments. Despite this, Marathon Digital Holdings did not sell any Bitcoin in June. Experts dismissed fears of a 'miner death spiral,' citing the network's difficulty adjustment mechanism. While hashrate decline may impact mining profitability, the network's security remains intact. The correlation between Bitcoin's price and hashrate suggests a potential bottom signal. Solutions like layer 2s could address long-term security challenges. Overall, the recent hashrate drop does not pose an immediate threat to Bitcoin's security or price stability.